Sony Ericsson Q3 2008 results...

Q3 highlights:

• Break even results, excluding restructuring charges, as challenging business conditions continued 
• C902 Cyber-shot™ camera phone is hit model of the quarter
• First Xperia™ branded multimedia phone X1 began shipping
• Expansion of music service offering with announcement of PlayNow™ plus

The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the third quarter ended September 30, 2008 is as follows:

SONY ERICSSON MOBILE
	Q3 2008	Q2 2008	Q3 2007
Number of units shipped (million)	25.7	24.4	25.9
Sales (Euro m.)	2,808	2,820	3,108
Gross margin (%)	22%	23%	31%
Average selling price (Euro)	109	116	120
Net income (Euro m.)	-25	6	267

Units shipped in the quarter were 25.7 million, a sequential increase but flat year-on-year, while sales for the quarter were Euro 2,808 million, a decrease of 10% compared to the third quarter of 2007.  Most of this decrease reflects the impact of exchange rate fluctuations, as well as a shift of the product mix to more lower priced phones. Gross margin also decreased year-on-year and sequentially due to continued price pressure at a time of adverse cost trends in the supplier base. 
This was partially mitigated by the introduction of new products at the end of the second quarter, such as the C902 Cyber-shot™ camera phone, which is selling well; however, strong competition continues, particularly in Europe. Income before taxes for the quarter was Euro 12 million, excluding restructuring charges of Euro 35 million, a decrease compared to the third quarter of 2007.

Average selling price (ASP) for Sony Ericsson decreased both sequentially and year-on-year in line with levels seen in previous quarters. This is due to selling more lower priced phones and increased price competition in the market for mid- to high-end phones. Sequentially, market share for the third quarter remained flat and is estimated to be around 8%.

Source: Sony Ericsson Press Release