Cell phone maker Sony Ericsson (Stockholm, Sweden) posted a first-quarter profit more than double what analysts expected and said strong sales of new camera phones boosted its market share as consumers flocked to its low- and mid-range phones that feature bright colors, clamshell cases, and entertainment options.
The company earned 82 million euros (U.S. $98.7 million) in the quarter that ended March 3, 2004 in contrast to a loss of 104 million euros a year earlier. Analysts had expected a profit of 36.7 million euros ($44.3 million).
It was the third consecutive quarter that Sony Ericsson, a joint venture between LM Ericsson of Sweden and Japan's Sony, posted a profit. Before that, it had lost money steadily since its founding in 2001.
Sales rose to 1.34 billion euros ($1.6 billion) from 806 million euros a year ago.
"A third consecutive quarter of profits and good growth in sales demonstrates that our strategy is paying off," said Katsumi Ihara, Sony Ericsson's president. "Our focus on GSM, UMTS and Japanese standards has proven successful, and our direction to emphasize imaging, multimedia, entertainment, and industrial design is well reflected in our latest product offerings." (Dow Jones Newswire)
Back to Breaking News