Sony Ericsson profits double in Q2
Revenue and profit at Sony Ericsson soared during the second quarter on the back of strong sales of its high-end Walkman mobile phones.
The world's fifth biggest mobile phone manufacturer announced revenue of €2.3bn for its fiscal second quarter, a rise of 41 per cent from the year-ago quarter.
Net income for the three months ended 30 June reached €143m, almost doubling the €75m profit recorded in the second quarter of 2005.
Income before taxes was €211m, marking an increase of 143 per cent from the €87m posted for the same quarter a year ago.
Sony Ericsson shipped 15.7 million mobile phones during the second quarter, up 33 per cent on the 11.8 million handsets sold in the same quarter last year.
The average selling price of mobile phones declined slightly sequentially, due to a greater proportion of low-priced models, such as the J100, J220 and J230 shipping in volume.
During the quarter the company shipped three new Walkman phones, the W300, W700 and W42S and announced two new models: the W850, a tri-band/UMTS slider phone, and the quad-band EDGE W710, the first sports Walkman with pedometer and jogging applications. The firm also began shipping the K800, Sony Ericsson's first Cybershot-branded camera phone.
"The second quarter has seen Sony Ericsson both announce and start to ship a wide variety of products confirming the company's ability to compete, capture market share and profitably grow the business. With a product line-up that includes a broad range of both basic and feature phones, Sony Ericsson is now in a position to broaden its customer base in all market regions and customer segments," said Miles Flint, president of Sony Ericsson.
According to Flint, growth in the global handset market is continuing to outpace expectations, and Sony Ericsson predicts that more than 950 million mobiles will be shipped worldwide during 2006.
Copyright © 2006, ENN