14 DAY TRIAL // Today, Japanese-Swedish mobile phone maker Sony Ericsson has announced its financial results for the second quarter of the ongoing year. According to the company, it registered sales of Euro 1,757 million for the time frame, which marks a 25 percent increase when compared to the previous quarter of the year, as well as a 4 percent increase from the second quarter of 2009. due to increased sales, the handset vendor announced a profit of Euro 63 million before taxes.
“Our second quarter results show that the company continued the momentum seen in the first quarter as a result of our focus on the value market and the success of new smartphones; Xperia X10 and Vivaz, launched during the first quarter. These models, along with the Xperia X10 mini and Xperia X10 mini pro which started shipping at the end of the second quarter, have been well received by operators and we are now well positioned for long term growth,” Bert Nordberg, President, Sony Ericsson, stated.
During the three months period, the company managed to sell a number of 11 million handsets, marking a 5 percent growth from the previous quarter, as well as a 20 percent decrease from the same time frame the previous year. The average selling price was of Euro 160, showing a 19 percent sequential increase, as well as a 31 percent growth year-on-year. Improved product and geographical mix, along with positive currency effects, are the main divers for the company's growth.
“The transformation programme, which started in mid-2008 is now in its final stages and on target to reduce annual operating expenses by Euro 880 million by the end of the year. Since the start of the program Sony Ericsson has reduced its global workforce by approximately 4,000 people to reach a total workforce of approximately 7,800 by June 30, 2010. The total restructuring charges taken to date for the programme are Euro 374 million,” Sony Ericsson announced.
The mobile phone maker announced that, as of June 30, 2010, it retained a net cash position of Euro 609 million, which marks a Euro 46 million increase over the previous quarter. The handset vendor's market share remained flat at 4 percent. According to the company, the global handset market should increase slightly in 2010.