Sony Ericsson profits on pricier handsets
Sony Ericsson recorded a profit in the second quarter thanks to sales of higher-priced handsets and the success of its Xperia X10 and Vivaz, which hit shelves in the first quarter.
The average selling price of a Sony Ericsson phone rose to $207 in the second quarter of 2010, up from $158 during the same period last year. Although the company's handset shipments fell 20 percent to 11 million, the higher average selling price offset the decline, bringing sales up slightly to $2.28 billion. Last year, the company shipped 13.8 million handsets and posted sales of $2.18 billion.
Sony Ericsson President Bert Nordberg said the company's new handsets, along with the Xperia X10 mini and Xperia X10 mini pro, "have been well received by operators, and we are now positioned for long-term growth."
The company managed to reign in last year's $276 million loss, bringing in $15.6 million in profits for the second quarter. The turnaround was attributed to layoffs and cost-saving measures, which began in 2008. Sony Ericsson has reduced its global workforce by about 4,000 since its restructuring program began in mid-2008 and is on track to cut annual operating expenses by $1.14 billion by the end of this year.
Looking ahead, Sony Ericsson said it expected "slight growth" in the global handset market this year. Its market share remained flat at about 4 percent in the second quarter.