High-end phones lift Sony Ericsson profits
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Sony Ericsson’s profit more than doubled in the second quarter of the year, thanks to the success of its high-end phones and growth in the global handset market which outpaced expectations.
Pre-tax income rose from €87m to €211m at the world’s fifth biggest maker of mobile phones, on sales that increased 41 per cent to €2.27bn. Net income rose from €75m to €143m.
Sony Ericsson, a London-based joint venture between its Japanese and Swedish parents, said that its market share increased as it shipped several new models of its successful Walkman branded music phones, first introduced last year. It also started shipping its first Cyber-shot branded 3.2 Megapixel camera phone, bring the well-known Sony camera brand to the mobile phone market.
Total units shipped in the quarter increased by a third from 11.8m to 15.7m.
Miles Flint, president of Sony Ericsson, said that it was “incredibly well-positioned for the mobile phone market” but added that the market was “intensely competitive” and it was a “day-to-day fight”.
Sony Ericsson forecast the global market outlook for 2006 to be above 950m units, up from the previous estimate of above 900m.
Nokia, is the world’s biggest mobile phone maker, with more than a third of the global market share. It is followed by Motorola, Samsung, and LG.
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