Cell phone giant Sony Ericsson said Thursday it swung to a profit in the second quarter behind a 55% jump in handset-unit sales.
The company, an equally owned venture of Swedish wireless titan Ericsson ERICY and Japanese consumer electronics juggernaut Sony SNE, posted a profit for the quarter ended June 30 of 89 million euros ($110 million). That reverses the year-ago loss of 82 million euros.
Sales rose 34% from a year ago to 1.5 billion euros. The company said its average phone sales price, or ASP, fell from first-quarter levels but hit company targets. Handset shipments hit 10.4 million.
Sony Ericsson also boosted its worldwide industry handset sales target for 2004 to 600 million from 550 million.
The news comes as a big handset rival, Nokia (NOK - Cramer's Take - Stockpickr), continues to take its lumps in the hypercompetitive handset market. As recently as this time last year, Nokia was head and shoulders above its competitors, but the company suffered through nearly a year of market share and profit squeezes amid changes in consumer demand. Once-vanquished rivals such as Motorola and Samsung have been gaining ground at a rapid clip.
"These results reflect continued strong demand for our style-oriented lineup of imaging and multimedia phones," Sony Ericsson President Miles Flint said. "We are confident that as we continue to enhance our portfolio with exciting and innovative products, the SonyEricsson brand will become ever stronger."
During the quarter, Sony Ericsson shipped to retailers its first UMTS 3G phone, the Z1010, which has now been launched by over a dozen network operators.
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