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Sony Ericsson post better than expected performance report
Friday, 14 October 2011
Mobile phone manufacturer Sony Ericsson reported a profit before tax of EUR 31 million, about Skr284 million, for the third quarter of 2011. That compares with profit of €62 million a year ago.
Analysts had on average expected a profit of 26.9 million euros, according to Reuter’s consensus.

Turnover amounted to 1.586 million euros, compared with 1.603 million euros a year earlier.
During the quarter, delivered 9.5 million Sony Ericsson mobile phones, compared with 10.4 million handsets third quarter of 2010. The average selling price was 166 euros, compared to 154 euros a year earlier.
Sales were in the third quarter, 33 percent higher than in the second quarter. Smart phones now account for over 80 percent of sales, according to the interim report.

Sony Ericsson's profits halved then compared with the third quarter of 2010. But CEO Bert Nordberg points in the interim report on what he sees as a "solid" improvement over the second quarter of this year, when the company made a loss of €42 million.
The Swedish-Japanese company has until now delivered 22 million smart phones based on Google's Android operating system.

"We will continue to invest in the Smartphone market, and shift the entire portfolio of Smartphone in 2012," writes Nordberg.

Sony Ericsson estimates that its share of the global market for Android mobile phones in the quarter was 12 percent in volume terms and 11 percent in value. The company maintains its forecast of a "modest" growth in the global mobile phone market this year.

About information that the telecom giant Ericsson is about to sell its half share to the Japanese Sony has not be reflected effected in the interim report.
Greger Johansson, chief analyst at Redeye, gives Sony Ericsson's interim grade of "okay".
“It's okay sales, good average price and profit in a little better than expected,” he says.

The only thing that is a bit negative is that the gross margin was very low, but hopefully it is only a temporary effect.
Ericsson, which owns part of the company, saw its shares rose one per cent when the Stockholm Stock Exchange opened.
By Scancomark.se Team

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