Sony Ericsson's Net Profit Rises 54%

Sony Ericsson said Thursday net profit rose 54% in the second quarter, as the world's fourth-largest cellphone maker expanded its market share with low and midrange phones. The London-based company, a joint venture between Ericsson and Sony Corp., posted net profit for the April-June quarter of €220 million ($303.4 million), compared with EUR 143 million a year earlier. Revenue increased 37% to EUR 3.11 billion from EUR 2.27 billion, while profit before tax increased 55% to EUR 327 million from EUR 211 million. Analyst had expected revenues of EUR 3.09 billion and pretax profits of EUR 389.8 million. Handset shipments rose 59% to 24.9 million from 15.7 million, but the average selling price per handset fell 14% to EUR 125 from EUR 145, as the company broadened its phone portfolio to target emerging markets. Sony Ericsson said its market share grew to over 9% in the quarter, a 3% rise from a year earlier. It expects the 2007 global market for mobile phones to be above 1.1 billion units. The Sweden-based Ericsson is the leader of the world telecommunication market for more than 125 years. About 40% of the mobile conversations worldwide are made via Ericsson systems, fact which makes this company the biggest supplier of mobile systems in the world. Ericsson is also a leader in broadband access and softswich segment. In addition, Ericsson is also extending its business in the consultancy field, integration of network management systems and services. Ericsson offers base systems, services, technologies for the portable terminals and licenses of technologies, while a complete portfolio of multimedia mobile products is offered by means of Sony Ericsson Company.