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Sony Ericsson Sales Rise 7%

7/15/2005 08:46:00 AM Eastern

Stockholm, Sweden — Mobile phone maker Sony Ericsson, enjoying the benefits of its new products lineup, recorded a 7 percent rise in second-quarter sales, reaching $2 billion, compared with $1.8 billion in the year-ago period.

Units shipped in the second quarter, ended June 30, jumped 14 percent to 11.8 million, compared with the same period last year, with sequential quarterly shipments jumping 26 percent.

Second-quarter net income declined 16 percent despite the increasing sales, to $90.6 million from a year-earlier $107.6 million, reflecting continued research and development investment, said the company. Sony Ericsson is a joint venture between Sweden’s LM Ericsson and Japan’s Sony.

Sony Ericsson said it gained momentum and market share during the second quarter as new products started shipping. The higher unit shipments reflected the broadening of the company’s product portfolio to appeal to a wider range of price segments in the market. Average phone selling price remained stable, said the company.

According to Sony Ericsson, the global handset market grew faster than expected in the second three months, primarily due to increased demand in the lower price segments in both mature and emerging markets. The company has upgraded its global market outlook for the year to over 720 million units shipped.