The 50-50 joint venture between LM Ericsson Telefon AB and Sony Corp increased revenue by 39.5% to 2bn euros ($2.6bn) in its fourth quarter to December 31 though net income increased 27.9% to 55m euros ($71.7m).
For the year as a whole, Sony Ericsson turned a net loss of 86m euros ($112.1m) into income of 316m euros ($412.3m) on revenue 39.6% higher at 6.5bn euros ($8.5bn).
The company, which targets the high end of the market, claims that its average selling price of 160 euros ($208.7) is one of the highest in the industry and growth was driven by demand for 3G phones.
Sony Ericsson struggled after its formation in 2001 and finally clawed its way into profitability in 2004. The rapid rise of Samsung has caused problems for the North American and European companies that once dominated the market and Siemens is expected to sell of its handset business in the near future in the face of bitter competition.
