Sony Ericsson Q3 2007 results

[Tehy]

Q3 Highlights:
- Year-on-year volume growth of 31%
- Continued volume growth driven by profitable lower priced phones
- Good market reaction to new slider form-factor of W580 Walkman® phone
- Successful launch of Sony Ericsson P1 smartphone

Units shipped in the quarter reached approximately 26 million, a 31% increase compared to the same period last year. Sales for the quarter were Euro 3,108 million, representing a year-on-year increase of 7%. Income before taxes for the quarter was Euro 384 million, representing a year-on-year decrease of 11%, which reflects the exceptional third quarter the company experienced in 2006. Net income for the quarter was Euro 267 million. In line with Sony Ericsson expectations, 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 (ASP) to Euro 120.

Sounds pretty good! Well done SE! :)

more:
Sony Ericsson Q3 2007 results - Continuing strong (http://www.sefanatics.com/other/sony-ericsson-q3-2007-results-continuing-strong/)

[difenbaker]

Cheaper handsets dent Sony Ericsson's profit
Quarterly shipments up 31%, enabling company to win market share
By Aude Lagorce, MarketWatch
Last Update: 9:32 AM ET Oct 11, 2007Print


LONDON (MarketWatch) -- Sony Ericsson reported Thursday a 10% decline in third-quarter profit as the mobile-phone-production joint venture of Sony Corp. and Ericsson AB sold more low- and mid-priced phones.

Net income generated by the world's fourth-largest maker of mobile phones fell in line with company estimates, dropping to 267 million euros ($375 million) from 298 million euros.

Quarterly sales rose 7% to 3.11 billion euros as the company shipped 25.9 million phones compared with 19.8 million a year earlier.

Pretax profit fell 11% to 384 million euros. Analysts surveyed by Stockholm researcher SME Direkt had estimated pretax profit of 380 million euros on sales of 3.34 billion euros.

Gross margin slipped, narrowing to 30.7% from 31.5% in the year-ago third quarter, but it increased more than one percentage point on a sequential basis. The average selling price, a closely watched gauge of the company's profitability, declined to 120 euros, down from 125 euros in the second quarter and 147 euros a year earlier.

But cheaper handsets led to higher volume and helped the vendor gain one percentage point of market share in the latest quarter, reaching 9%.
"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," a company statement said.
Analysts welcomed the results.

"Dispelling lingering concerns over its ability to sustain pricing power and profitability in a more competitive environment, Sony Ericsson produced robust margin improvements at both the gross and operating income levels," said Dresdner Kleinwort analyst Per Lindberg.

http://www.marketwatch.com/news/story/sony-ericsson-profit-slips-mix/story.aspx?guid=%7B161AD0F6%2D2561%2D488F%2DA81D%2 D828E20495AE5%7D

:)