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Cell Phone Market
By Admin | July 9, 2007
Mobile telephone maker Sony Ericsson on Thursday reported increased net profits and sales of handsets for second quarter 2007 compared with the corresponding business period in 2006. The joint venture between Japan’s Sony (NYSE: SNE) and Sweden’s Ericsson (Nasdaq: ERICY) said net income for the quarter was 220 million euros (US$300 million), up from 143 million euros ($197 million) for the second quarter 2006.
Group turnover increased 37 percent year-on-year to 3.11 billion euros ($4.28 billion). Sony Ericsson said it sold 24.9 million handsets during second quarter 2007, compared to 15.7 million units in the corresponding business period 2006.
In the first quarter 2007 it sold 21.8 million units. The group said that the average selling price of its mobile devices in the second quarter 2007 was 125 euros ($172), down from 134 euros ($185) in the first quarter 2007 and 145 euros ($200)in the second quarter 2006.
The lower average selling price was “in line with Sony Ericsson expectations,” the group said, noting the increase in its sales of low and mid-tier priced phones in Latin America, Western Europe as well as Central and Eastern Europe, Middle East and Africa.
“Sony Ericsson has continued to capture market share in a more competitive market,” Sony Ericsson chief executive Miles Flint said in a statement. Sony Ericsson estimated that its share of the global handset market in the second quarter was 9 percent.
In its outlook, the group said it estimated that global handset sales in 2007 would top 1.1 billion units. The group recently unveiled plans to establish a research and development unit in Chennai, India, later this year. Sony Ericsson was formed in October 2001 in an effort to challenge industry leaders Nokia (NYSE: NOK) and Motorola With Apple’s iPhone release things are bound to heat up.
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