Revenues up, profits drop at Sony Ericsson
16-01-2008
by ElectricNews.Net

Mobile manufacturer Sony Ericsson's fourth quarter profit fell by 17 percent despite shipping more units over the past year.

The firm said on Wednesday net income for the three-month period came to EUR373 million compared to EUR447 million in the same period in 2006. The drop in quarterly profits reflects the mobile maker's shift towards introducing a wider range of lower-priced handsets in its portfolio.

For the full year 2007 net income reached EUR1.11 billion up around 12 percent from 2006's reported net income of EUR997 million. Commenting on the results company Sony Ericsson president Dick Komiyama said 2007 was a "very good year".

The Telefon AB LM Ericsson and Sony Corp venture said it shipped 30.8 million units during the traditionally busy fourth quarter, an increase of 18 percent compared with the same period in 2006. Over the full year the mobile maker shipped 103.4 million handsets worldwide.

The company claimed it gained market share during the three-month period, thanks to continued demand for its higher end phones such as the K550 Cyber-shot as well as its range of Walkman phones in the US and Europe.

Sales for the fourth quarter remained almost unchanged at EUR3.77 billion compared to EUR3.78 billion in same period for 2006.

"Investments are being made in both R&D and brand building, to deepen the portfolio and strengthen Sony Ericsson's presence in new and developing markets around the world. Our target remains to become one of the top three players in the industry, and the momentum we established in 2006 and 2007 makes this a realistic and achievable ambition," said Komiyama.

Komiyama has replaced Miles Flint, who stepped down on 1 November 2007.

By Bryan Collins