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Sony Ericsson continues profitable growth and market share gains Q2 Highlights.
Esato News
Continued strong year-on-year volume growth of 59%
Income before tax grew 55% year-on-year to €327 million
Walkman® phone sales of 9 million in quarter sustain leadership in music phones
Expanded portfolio continues to generate market share gains
The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the second quarter ended June 30, 2007 is as follows:
Q2 2006
Q1 2007
Q2 2007
Number of units shipped (million
15.7
21.8
24.9
Sales (Euro m.)
2,272
2,925
3,112
Gross Margin (%)
28.5%
30.3
29.6%
Operating Income (Euro m.)
203
346
315
Operating Income (%)
8.9%
11.8
10.1%
Income before taxes (Euro m.)
211
362
327
Net income (Euro m.)
143
254
220
Average Sales Price (Euro)
145
134
125
Units shipped in the quarter reached 24.9 million, a 59% increase compared to the same period last year, generating both year-on-year and sequential market share gains. Sales for the quarter were Euro 3,112 million, representing a year-on-year increase of 37%. Income before taxes for the quarter was Euro 327 million, representing a year-on-year increase of 55%. Net income for the quarter was Euro 220 million. In line with Sony Ericsson expectations, the increase in Q2 in low and mid-tier priced phones in the product portfolio resulted in a decline in ASP to Euro 125.
"Sony Ericsson has continued to capture market share in a more competitive market place with a product offering that addresses a wider consumer audience than ever before. Our financial results for Q2 2007 reflect our direction to build our brand in key imaging, music and multimedia categories with a portfolio that includes more competitively priced phones," said Miles Flint, President of Sony Ericsson. "We expect the market in 2007 to remain competitive, but with recently announced products such as the flag-ship Walkman® and Cyber-shot(TM) models we aim to continue to grow faster than the market."
During the quarter Sony Ericsson continued to capture market share in Latin America, Western Europe and CEEMEA (Central and Eastern Europe, Middle East, Africa) due to low and mid-tier feature phones such as the W300 and W200 Walkman® phones and the K310 and Z310 phones. At the same time, the company continued to strengthen its product line up by announcing a large number of new products across a variety of price points, including the K850, an HSDPA, 5 mega-pixel flag-ship Cyber-shot(TM) phone, and the W960, a high-end Walkman® phone with 8GB of on-board storage.
Following an announcement in January that Sony Ericsson would start the local manufacture of phones in India through its global manufacturing partners Flextronics and Foxconn, in Q2 the company extended its commitment to this important and rapidly growing market by announcing plans to establish its own research and development unit in Chennai later in the year.
In Q2 new trademark royalty fees were agreed with the parent companies, and these additional expenses were recorded for the first time in the second quarter.
Sony Ericsson forecasts that the 2007 global handset market will be above 1.1 billion units. The company grew market share in Q2 2007 around 3 percentage points to well over 9% compared with the same period last year.
www.sonyericsson.com--
Posted: 2007-07-12 00:11:30
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Well Done
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Posted: 2007-07-12 00:46:08
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thats Swedish "steel" when its like best.......he he
keep up the good work
edit. (i think its fairly remarkable, that 2 small nations like Sweden/Finland, is world leading on cell phones. or what do you guys think ? )
_________________
k810i
w810i
T28
k850i booked
[ This Message was edited by: plankgatan on 2007-07-12 00:05 ]
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Posted: 2007-07-12 01:01:09
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When will SE displace Samsung? Very sooner?
This message was posted from a WAP device
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Posted: 2007-07-12 04:31:08
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Nice job,
Creating both Walkman and Cybershot lines was a very smart move indeed
I think we can expect a 11-13% marketshare by the end of the year, as Moto is losing a lot of marketshare.
will be in top 3 by 2008
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Posted: 2007-07-12 07:30:34
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Excellent set of results again.
The amount of units shipped compared to last year shows its still able to capture market share in and grow faster than the industry in general.
My thoughts:
I don't think SE should put all its eggs in one basket by relying on Walkman music phones - it has already established Walkman in the public mind and it doesn't need to try much harder to hold the 'musicphone' market. We can be safe in saying people want Walkman phones. Apple will always be a niche player.
More Cyber-shots are needed - there is absolutely no reason why the Walkman success can't be replicated with Cyber-shot. SE needs to propagate more demand for Cyber-shot like it has for Walkman because if not enough are out there, I feel phones like the K810i might be in danger of becoming niched, i.e become a camerphone enthusiasts choice.
More 'ultra-slim' handsets are needed as this is the only way it is going to grapple with Samsung, which is turning out to be a tough nut to crack. Samsung will soon be a 'byword' for slider and like it or not, the 'slim black slider' format is here to stay.
SE might have gained market share but Motorola is weak at the moment and will be for some time, so don't be surprised if the other two big-hitters have captured market share at Moto's expense when they release figures later on this month.
I'd say more slim phones are needed right now,
Good set of results all round.
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Posted: 2007-07-12 09:53:16
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Mmm I just heard on the financial news that Motorola will probably make a loss this quarter and that Sonyericsson announced the lowest profit growth in two years. Nokia and Samsung are doing okay.
Looking at the lower profits: it's doesn't surprise me. When you take the normal
flagship cycle the K850i should have been out by now (just like the K800, K750, K700 and T610 in previous years). This not being the case profit loss can be expected.
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Posted: 2007-07-12 10:14:58
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