Sony Ericsson has revealed strong Q2 earnings and is confident that the rest of the year will continue to see good results.
Thanks to its high level multimedia handsets, and the co-branding of its mobile phones as Walkmans, Sony Ericsson has set a standard that rivals Nokia and Motorola will be looking to follow.
Pretax profits rose to 211 million euros with growth in the handset market continuing to outperform expectations. Total industry handset sales for the second quarter are estimated at 230 million.
Sony Ericsson has intentially targeted the expensive end of the market with handsets having an average selling price of almost 50% more than its rival Nokia.
Sony Ericsson’s second-quarter sales were 2.27 billion euros versus a forecast of 2.09 billion. Its handset sales amounted to 15.7 million units, compared with an expected 14.3 million.
Sony Ericsson has focused on more expensive phones and this tactic is paying off as the overall mobile phone subscriber growth rate is slowing but more and more people are demanding higher functionality from their phones.
