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Tokyo/Stockholm (pte021/18.01.2005/11:30) - Mobile phone manufacturer Sony Ericsson http://www.sonyericsson.com has reported a dramatic rise in both sales and profits in the fourth quarter. Its 3G handsets have led demand, the company say. However, profits were less than analysts were originally expecting with increased pressure on margins. Sales for 2004 increased to 6,525 million euros, a rise of 39.6 per cent from the previous year. The company also managed to overturn a net income loss of 86 million euros in 2003 to post a profit of 316 million euros at the end of 2004. http://www.sonyericsson.com/spg.jsp?cc=global&lc=en&ver=4001&template=pc1_1_1&zone=pc&lm=pc1&prid=2731
Sony and Ericsson's joint venture had sales of just over 2 billion euros in the three months to December 31, an increase of 40 per cent year-on-year. Pre-tax profits reached 140 million euro, in comparison with 46 million euros the previous year. Sony Ericsson, the sixth biggest producer in the world, has concentrated on camera phones and higher end products. Due to increased spending on brand building and product development, it has been able to raise the average selling price of its phone to 160 euros.
"The fourth quarter continued a trend of expansion in both volume and sales, showing the company's ability to effectively compete in this dynamic market," said Miles Flint, its chief executive. "Strong growth in Q4 was led by good up-take of our latest 3G UMTS phones which has laid the groundwork for future expansion of our 3G portfolio." In the fourth quarter, Sony Ericsson sold 12.6 million handsets, a rise of 56 per cent compared to the same period last year.
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