by CIO Staff

Sony Ericsson Profits Surge on Strong Phone Sales

Apr 13, 20062 mins
IT Leadership

Mobile phone maker Sony Ericsson Mobile Communications reported a surge in first-quarter profits Thursday, helped by a large increase in the number of phones it shipped.

Sony Ericsson said it shipped 13.3 million phones during the quarter, a 41 percent increase over the same period last year. The number of phones shipped was down compared to the fourth quarter, which typically spikes due to the holiday season.

Sales in the first quarter grew 55 percent to 1.99 billion euros (US$2.4 billion) compared to the first quarter last year, and net income more than tripled, reaching 109 million euros compared to 32 million a year earlier, Sony Ericsson said.

The company credited the volume of new products released during the quarter for the growth. The vendor introduced three Walkman phones and its first camera phone sporting Sony’s Cyber-shot brand.

Sony Ericsson also reported that the average selling price of its phones rose to 149 euros, compared to 144 euros during the fourth quarter last year. The increase follows a similar growth in average selling price at Nokia, which announced earlier this week that the average price of its phones during the quarter was 103 euros, rather than the 99 euros or less it had expected.

Sony Ericsson expects growth in the global handset market to continue to beat previous expectations, predicting that 900 million phones will sell globally in 2006. That’s up from the phone maker’s forecast of 10 percent growth on the 780 million phones sold in 2005.

Sony Ericsson is in fifth place among mobile phone vendors, trailing behind Nokia, Motorola, Samsung Electronics and LG Electronics.

-Nancy Gohring, IDG News Service

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