Smartphones drive Sony Ericsson 2Q profit

Michael Carroll
19 Jul 2010

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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