Sony Ericsson Mobile Communications has reported strong Q1 figures.
For Q1 2004 the Sony and Ericsson-owned mobile phone venture reported net income of E82 million, compared with a net loss of E104 million in Q1 2003. Pre-tax profit was E97 million, double the E37.6 million analysts had predicted.
Sony Ericsson made its first profit in Q3 last year, after a string of losses since it was founded in October 2001. This quarter’s profit is its third in a row.
Meanwhile, sales grew 66% to E1.33 billion from E806 million in the first quarter of 2003. The company attributed the turnaround to favorable market conditions and last year’s restructuring.
The results increase the pressure on Nokia, which last week disappointed investors with an admission that its handset portfolio was lacking medium-priced models and it was losing market share. Last week also saw the world’s third-largest mobile phone maker Samsung Electronics post a record Q1 as it took advantage of soaring demand for mobile phones.
Sony Ericsson is the sixth largest mobile phone maker in the world, and during the quarter it shipped a record 8.8 million handsets, 63% up on the 5.4 million units it shipped in the first quarter of 2003. The figure is especially impressive because it is larger than the 8 million units it shipped during the traditionally strong Q4, which benefits from the Christmas period. The company saw particular momentum with its mid- and entry-level units.
Looking forward, Sony Ericsson now expects the mobile phone market to expand to 550 million handsets in 2004, compared with a previous forecast of 520 million.
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The Japanese-Swedish handset vendor seems to be gaining market share due to its color screen camera phones, an area where Nokia has been particularly poor.
This article is based on material originally published by ComputerWire
