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Strong Q2 for Sony Ericsson

Handset vendor Sony Ericsson has reported another strong quarter, shipping 24.9 million units in 2Q07, a 59 per cent increase on the same period in 2006. And, while the firm’s average selling price (ASP) is on a downward trend, its sales for the quarter – at EUR3.1bn – were up 37 per cent year on year.

Net profit for the quarter was EUR220m and the firm justified the declining ASP, which has fallen to EUR125 from EUR145 in 4Q06, with the fact that it has significantly expanded its mid- and low-tier handset range.

By the firm’s own estimates, its market share in 2Q07 grew by three points to over nine per cent, helped by a strong performance in Latin America, Western Europe and the composite sales region of CEEMEA (Central and Eastern Europe, Middle East and Africa). Sony Ericsson singled out the strong performance of its lower end Walkman phones, the W300 and W200, and the K310 and Z310 models.

The firm shipped nine million Walkman phones during the quarter, which it said cemented its leadership in the music phone sector.

“Sony Ericsson has continued to capture market share in a more competitive market place with a product offering that addresses a wider consumer audience than ever before,” said Miles Flint, the firm’s president. “Our financial results for Q2 2007 reflect our direction to build our brand in key imaging, music and multimedia categories with a portfolio that includes more competitively priced phones. We expect the market in 2007 to remain competitive, but with recently announced products such as the flag-ship Walkman and Cyber-shot models we aim to continue to grow faster than the market.”

Sony Ericsson predicted that the global handset market for 2007 will reach more than 1.1 billion units.


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