Sony Ericsson continue it's ascension...
- 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
The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the third quarter ended September 30, 2007 is as follows:
|
| Q3 2006 | Q2 2007 | Q3 2007 |
| Number of units shipped (million) | 19.8 | 24.9 | 25.9 |
| Sales (Euro m.) | 2,913 | 3,112 | 3,108 |
| Gross Margin % | 31.5% | 29.6% | 30.7% |
| Operating Income (Euro m.) | 427 | 315 | 393 |
| Operating Income % | 14.6% | 10.1% | 12.7% |
| Income Before Taxes (Euro m.) | 433 | 327 | 384 |
| Net income (Euro m.) | 298 | 220 | 267 |
| Average Sales Price (Euro) | 147 | 125 | 120 |
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.
“““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 flag-ship Walkman® phone models such as the W910 and W960 plus the much anticipated 5 mega-pixel Cyber-shot™ K850 camera phone launching in time for the holiday season.””
During the quarter Sony Ericsson strengthened its position in North America and Latin America as well as Western Europe due to well accepted Walkman® and Cyber-shot™ phones. Previously announced activities to further strengthen the overall portfolio such as manufacturing and R&D activities in India, plus an R&D licensing agreement with Sagem continue to progress as planned.
Sony Ericsson forecasts that the 2007 global handset market will be above 1.1 billion units. The company gained around 1% of market share compared with the same period last year and finished the third quarter at over 9%.
Invoices from Ericsson amounted to Euro 152 million in the quarter, which was offset from the advance payment made by Sony Ericsson to Ericsson in the first quarter of 2007.
Source: Sony Ericsson Press Release