Smartphones drive Sony Ericsson 2Q profit

Michael Carroll
19 Jul 2010
00:00
News

Sony Ericsson continued along the road to recovery during 2Q10, reporting its second consecutive quarterly profit as rising handset prices offset lower unit shipments.

 

The firm overturned a net loss of €213 million ($275m) in 2Q09 with a profit of €12 million in 2Q10, as sales grew from 25% to €1.7 billion in the most recent quarter.

 

The sales of new Android-based smartphones such as the Xperia and the X10 drove the increase in sales and the average selling price (ASP), which rose to €160 from €122 a year ago.

 

President Bert Nordberg said unit shipments of 11 million was down 20% year-on-year, but up 5% sequentially.

 

He said Sony Ercisson’s focus on “value” smartphones was paying off, leaving the vendor “well positioned for long term growth.”

 

It operating margin was 2%, up from 1% sequentially and well up from the 16% deficit a year. Operating margin excluding restructuring charges was 4%.

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