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Sony Ericsson reports First Quarter Results
15 April 2005

Tokyo and Stockholm, April 15 -- Sony and Ericsson today announced the consolidated financial summary for the first quarter ended March 31, 2005 of Sony Ericsson Mobile Communications AB (Sony Ericsson), the 50:50 joint venture of Sony and Ericsson.

Q1 2004Q4 2004Q1 2005
Numbers of units shipped (million)8.812.69.4
Sales (EURO m.)133820051289
Income before taxes (EURO m.)9714070
Net income (EURO m.)825532

* Q4 2004 and Q1 2005 IBT includes consolidation of BMC and Net Income includes deduction of minority interest in BMC 1)
** Q4 2004 Net Income includes a negative effect of a valuation allowance on deferred tax assets of Euro 45 million

Units shipped in the quarter reached 9.4 million, a 7% increase compared to the same period last year. Sales for the quarter were Euro 1,289 million, representing a year on year decrease of 4%. Income before taxes was Euro 70 million and net income was Euro 32 million, which represent year on year decreases of Euro 27 million and Euro 50 million respectively.

In line with expectation, market growth was moderate during the quarter. As a result of more normal seasonality the market declined sequentially. The Western European market declined slightly and witnessed a shift to pre-paid products, while general inventory build up in the sales channels during Q4 spilling over into the first quarter created a more competitive market environment than a year ago.

Sony Ericsson’s decrease in average selling price (ASP) was partly due to the general market conditions outlined above, but also because the product line-up was mature and few new products were launched during the period. The company continued investment in product portfolio and brand development, while maintaining gross margins.

“The exciting and innovative products we announced during the first quarter have been well received and will give us a stronger portfolio during the rest of the year,” said Miles Flint, President of Sony Ericsson. “We believe there is good growth potential in the market, both from new subscribers and from consumers who are upgrading their mobile phones, so the increased investments we are making now will build our brand and strengthen our product portfolio so we can continue to excite consumers.”


During the quarter Sony Ericsson announced a large number of new products including two new 3G UMTS phones, the company’s first 2 megapixel auto focus camera phones and a new Walkman® branded music phone as well as several other phones and accessories that will roll out during Q2 and Q3. Sony Ericsson started shipping the T290 and K300, the S710 in the United States plus the A1404S for KDDI and the NTT DoCoMo premini-II in Japan. The company also activated a major global sports sponsorship deal with the Women’s Tennis Association Tour during the period, which was renamed the Sony Ericsson WTA Tour.
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Posted: 2005-04-15 09:35:01
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Hehe, welcome back! I didnt read the results. This message was posted from a K500
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Posted: 2005-04-15 09:38:56
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Quote:
On 2005-04-15 09:38:56, govigov wrote:
Hehe, welcome back! I didnt read the results.

<p>

<i>This message was posted from a K500</I>
... welcome back @masseur!
(excuse my off-topic)
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Posted: 2005-04-15 09:49:36
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Welcome back masseur !

Nice to see my favourit moderator back in town.. (you are still a mod, no ?)

Its nice to see are selling more phones.
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Posted: 2005-04-15 10:09:27
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welcome back, i was just reading about that here...

http://news.bbc.co.uk/1/hi/business/4447241.stm
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Posted: 2005-04-15 10:25:48
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"Sony Ericsson said demand suffered because of a "mature" product range. "

Does this mean SE are going to start developing kiddy phones like the Nokia 3200 and 3220 ?
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Posted: 2005-04-15 10:29:42
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Didnt read the whole thing but from that table with sale/profit figures seems that Q1 2005 has been very disappointing for se
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Posted: 2005-04-15 10:46:00
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What does that mean, 'mature'? Maybe that they now have products of all tastes and that there isn't a new major breakthrough waiting? Or that all other manufacturers have reached a certain level?

Prices have dropped indeed. If you see what you can get for say €300 now in comparison to only 2 years ago it is incredible.
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Posted: 2005-04-15 10:49:20
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I wonder how that would compare to the results from other manufacturers?
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Posted: 2005-04-15 11:04:31
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welcome back masseur
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Posted: 2005-04-15 11:05:59
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