Sony Ericsson first quarter turnover and profits shrink

Stockholm - Sony Ericsson LogoMobile telephone maker Sony Ericsson on Wednesday posted lower turnover and a 47-per-cent drop in pre-tax income for first quarter 2008.

Pre-tax income for the quarter was 193 million euros (307 million dollars), compared to 362 million euros for the corresponding period in 2007.

Group turnover was 2.7 billion euros, down 8 per cent on the first quarter 2007, the group said.

In March, the group announced that it had expected lower sales and profits in the first quarter amid slowdown in demand.

Sony Ericsson said it sold 22.3 million handsets during the quarter, compared to the 30.8 million handsets sold during the fourth quarter of 2007 and 21.8 million units sold during the first quarter of 2007.

The average selling price of Sony Ericsson handsets in the quarter was 121 euros. In fourth quarter 2007 the average selling price was 123 euros while in first quarter 2007 it was 134 euros.

Sony Ericsson estimated that the global handset market in 2008 would grow around 10 per cent from more than 1.1 billion units in 2007. Emerging markets were expected to account for the main growth.

The group's share of the global market was estimated at 8 per cent, down 1 percentage point on fourth quarter 2007.

Sony Ericsson chief executive Dick Komiyama said the group hoped to benefit from recently launched handsets in the coming quarter.

Sony Ericsson was formed in October 2001 by Japan's Sony and Sweden's Ericsson. (dpa)

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