Sony Ericsson marks fifth anniversary with US$374 million profit

Sony Ericsson continues to forecast the 2006 global handset market as being above 950 million units. On this basis the company believes it has outperformed the growth rate in the market and gained over 1% point market share in 3Q06.

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By  Tawanda Chihota Published  October 12, 2006

Sony Ericsson Mobile Communications has reported that for the third quarter to end September the number of mobile handsets shipped globally rose to 19.8 million, up from 13.8 million a year earlier. Sales for the period amounted to Eur2.913 billion (US$3.65 billion), with net income more than doubling to Eur298 million, up from Eur104 million a year earlier. Sony Ericsson captured market share during the quarter due to the success of products such as the K800 Cyber-shot phone and Walkman phone line-up. The company further strengthened its music offering at the end of the quarter with the shipment of a new high-end Walkman phone, the W850, a tri-band/UMTS slider phone with storage capacity for up to 1,000 songs. Sony Ericsson also enhanced its music proposition by upgrading its PlayNow service to include full track, over-the-air downloads to high-end Walkman models such as the new W850 and by launching M-BUZZ, a fixed and mobile internet space to promote new artists and their music. “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 or music is creating a halo effect over lower-end models in the same category and encouraging new users to try our phones,” explained Miles Flint, president of Sony Ericsson. Sony Ericsson continues to forecast the 2006 global handset market as being above 950 million units. On this basis the company believes it has outperformed the growth rate in the market and gained over 1% point market share this quarter, to reach a global market share of approximately 8%.

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