Earnings: Sony Ericsson Revenues Up 7 Percent, Profit Down 10 Percent
By James Quintana Pearce - Thu 11 Oct 2007 07:06 AM PST
Sony (NYSE: SNE) Ericsson (NSDQ: ERIC) has reported its third quarter results, showing lower profits on increased shipments. Net profit for the third quarter fell 10 percent year-on-year to 267 million euros (US$380 million), with revenues for the third month increasing 7 percent to 3.11 billion euros (US$4.42 billion). However, device shipments increased by 31 percent year-on-year to 25.9 million as the company pushed into emerging markets with lower-end handsets, which gave it 9 percent of the global mobile phone market reports Dow Jones.
Sony Ericsson President and Chief Executive Miles Flint (stepping down on Nov 1) said the company was in a transitional period as it expands its portfolio from the Walkman and Cybershot brands that have been so successful. With other handset manufacturers targeting the music phone niche and the launch of the iPhone Sony Ericsson is seeing a bit of competition there… On the iPhone: “I don’t want to criticize innovation, but the thinking that (the iPhone) is generating in the industry might be greater than the share it will represent,” said Flint..."In an industry where innovation is the life blood, it has been a great stimulant for other handset makers,” said Flint, when asked about the iPhone.”
Posted in: Companies, Sony Ericsson, Money, Earnings
