Sony Ericsson Sales Up, Net Down
By Staff -- TWICE, 10/22/2007
LONDON — Sony Ericsson reported higher unit and dollar sales, but lower net income for the third quarter ended Sept. 30.
The company shipments during the quarter reached 26 million units, a 31 percent increase compared to the same period last year.
Sales for the quarter were $4.4 billion, representing a year-on-year increase of 7 percent.
Income before taxes for the quarter was $542.5 million, representing a year-on-year decrease of 11 percent, “which reflects the exceptional third quarter the company experienced in 2006,” the cellphone maker said.
Net income for the quarter was $377.2 million down from $420.9 million during last year's third quarter.
The increase in low- and mid-tier priced phones in the product portfolio in the third quarter resulted in a decline in average selling price to $169.50 down from $207.66 last year.
“The quarter has seen Sony Ericsson continue to generate significant year-on-year volume growth with a portfolio of products spread across the widest variety of price points in the company's history. Low- and mid-tier priced models such as the W200 Walkman phone and simple 'talk and text' range of phones have been key volume drivers during the quarter, while the high-spec P1 smartphone and W580 slider Walkman phone have been well received and strengthen the portfolio at the higher-end,” said Miles Flint, president of Sony Ericsson. “We are confident that the remainder of the year will see us further capitalize on this new broader portfolio with flagship Walkman phone models ... plus the much anticipated 5 megapixel Cyber-shot K850 camera phone launching in time for the holiday season.”
Sony Ericsson strengthened its position in North America, Latin America and Western Europe due to well- accepted Walkman and Cyber-shot phones, the company said.
Sony Ericsson announced that Flint will step down as company president on Nov. 1. Hideki 'Dick' Komiyama, currently director, chairman, Sony Electronics USA, and electronics marketing and sales strategies executive VP, Sony Corporation, Japan, will succeed Flint.
Flint will remain as executive advisor to Komiyama until the end of 2007.
