Record Quarter Caps a Record Year for Sony Ericsson

Sony Ericsson has reported that it shipped 26 million handsets in the past quarter, a 61% increase compared to the same period last year, generating significant year-on-year market share gains.

Sales for the quarter were EUR3.78 (US$4.9) billion, representing a year-on-year increase of 64%. Net income for the quarter was EUR447 (US$578) million.

Average Selling Price (ASP) was slightly higher than expected due to more favourable than expected market conditions and continuing strong demand for Sony Ericsson's handsets.

Particularly strong growth was reported in emerging markets in Latin America and Asia Pacific, as well as in Europe. No comment about the US market though. The company said that over the whole year, some 60 million music enabled phones, including 17 million Walkman phones sold.

"The fourth quarter saw Sony Ericsson finish a strong year with record volumes, sales and net income due to the soaring popularity of our imaging and music phones. Earlier investments in R&D and marketing have enabled us to expand the portfolio and strengthen the brand to increase consumer and operator appeal. Our target is to become one of the top three players in the industry, and the momentum we established in 2006 makes this an achievable ambition," said Miles Flint, President of Sony Ericsson.

Sony Ericsson estimates the 2006 global handset market as being around 980 million units, higher than previous forecasts of over 950 million units for the year. On this basis the company believes it has outperformed the market during the quarter, gaining around 1% of market share sequentially, to achieve a global market share of approximately 9% during Q4. In Q4 2006 Sony Ericsson grew market share slightly over 2% against the same period for the previous year. "

Posted to the site on 17th January 2007