Feeds

Sony Ericsson blames hit products for Q3 profits surge

'Halo effect'

  • alert
  • submit to reddit

Designing a Defense for Mobile Applications

Sony Ericsson has announced pre-tax earnings of €433m for its fiscal third quarter, up 187 per cent year-on-year.

This marks a profit increase of €222m compared to the €211m recorded during its last fiscal quarter and a rise of €282m versus the same three-month period a year ago.

Sony Ericsson, which is the world's fourth largest mobile manufacturer, reported sales of its Cyber-shot and Walkman phones had been particularly strong during the quarter.

Sales for the period amounted to €2,913m, representing a year-on-year increase of 42 per cent. Net income was € 298m, compared to €104m last year.

The firm shipped 19.8m mobile phones during the three-month period, a 43 per cent increase compared to the same quarter last year, and approximately double the market growth rate.

"The third quarter saw Sony Ericsson reap the success of hit products announced earlier in the year such as the high-end K800 and W810, mid-range K610 and lower-priced W300 and K310. Our strategy of using flagship products to give Sony Ericsson a lead position within a product category such as imaging with the Cyber-shot megapixel camera phone or music with the Walkman line-up is creating a halo effect over lower-end models in the same category and encouraging new users to try our phones," said Miles Flint, president of Sony Ericsson.

The mobile phone maker thinks the global handset market will total more than 950m units this year. On this basis the company believes it has outperformed the growth rate in the sector and gained more than a 1 percentage point market share this quarter, to reach a global market share of approximately 8 per cent.

The company, a joint venture between Japan's Sony and Sweden's Ericsson, celebrated its fifth anniversary on October 1 2006. It currently employs over 7,000 people worldwide in Europe, Japan, China and America.

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.