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Sony Ericsson charts 59% increase in shipments

Sony Ericsson has announced a 59% annual increase in unit shipments in the second quarter of this year, and a 55% annual increase in pre-tax profits.

Sony Ericsson has announced a 59% annual increase in unit shipments in the second quarter of this year, and a 55% annual increase in pre-tax profits.

Overall revenues reached US$449.5 million with the handset vendor shipping 24.9 million units during the quarter up from 15.7 million units in the corresponding period in 2006.

Sales revenues from its handset division reached US$4.2 billion during the surveyed period, up from US$3.1 billion from the year ago period, representing a 35% annual increase.

Sony Ericsson believes it increased its market share by "around three percentage points to well over 9% compared with the same period last year" during the quarter, with the company additionally noting strong gains in emerging markets such as the Middle East and Africa.

The company's average selling price dropped to US$172 during 2Q07, down from US$200 in 2Q06, as the company increased its presence in the low and mid tiers of the market.

"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, president of Sony Ericsson.

As a result, the company also saw its operating margins fall sequentially from 11.8% to 10.1% during 2Q07.

"Our financial results for 2Q07 reflect our direction to build our brand in key imaging, music and multimedia categories with a portfolio that includes more competitively priced phones," added Flint.