Q3 results for Sony Ericsson

W200 is a cheap phone from Sony Ericsson The number of sold phones from July to September grew with 31 percent compared to the 19.8 million sold phones last year, and the 25.9 million sold phones this year. This is mainly because the cheaper models have been selling really good.

The competition is still hard, though, and to gain a greater market share Sony Ericsson has had to aim for the fast growing markets – countries like India and Latin America. Here, however, the income is lower, which makes the average phone price a bit lower, too.
In Q3 last year the average price for a Sony Ericsson phone was €147, while the average price this year is at €120. Sony Ericsson however thinks, that the results of Q3 last year was remarkably good, which makes it hard to compare.

The sales grew with 7 percent, from €2.91 billion last year to the €3.11 billions this year.

Even though more phones have been sold, the income fell. The operating income fell from last year’s €433 million to this year’s €393 million. Netto income fell by 10 percent.

Sony Ericsson’s market share is now above nine percent, the company thinks.

Here’s an overview

  Q3 2006 Q2 2007 Q3 2007
Number of units shipped (million) 19.8 24.9 25.9
Sales (Euro m.) 2,913 3,112 3,108
Gross Margin % 31.5% 29.6% 30.7%
Operating Income (Euro m.) 427 315 393
Operating Income % 14.6% 10.1% 12.7%
Income Before Taxes (Euro m.) 433 327 384
Net income (Euro m.) 298 220 267
Average Sales Price (Euro) 147 125 120
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