Sony Ericsson profit falls nearly 17%
STOCKHOLM, Sweden (AP) -- Mobile phone maker Sony Ericsson Mobile Communications AB said on Wednesday fourth-quarter profit fell nearly 17 percent due to higher costs.
The Telefon AB LM Ericsson and Sony Corp. (SNE) joint venture said net profit for the three-month period came to $555 million. For the full year 2007, however, net income reached $1.6 billion, up around 12 percent from 2006.
Although it said the number of shipped units had climbed to around 18 percent in the quarter, compared with the same period in 2007, operating costs were $1.8 billion.
Sales for the quarter remained almost unchanged at $5.61 billion compared with the fourth quarter in 2006.
The company added however that it gained market share in the quarter, thanks to continued good demand of its higher end phones, including the K550 Cyber-shot, the W200, W300 and W580 Walkman phones in the Americas and Europe.
New Sony Ericsson President Dick Komiyama, who replaced Miles Flint on Nov. 1, called 2007 "a very good year," saying it highlighted how the company strategically positioned itself to capture market share with an expanded product portfolio.
"Investments are being made in both research and development and brand building, to deepen the portfolio and strengthen Sony Ericsson's presence in new and developing markets around the world."
He also reiterated the company's target to become one of the top three players in the industry.
Sony Ericsson said it expects the 2007 global handset market to reach over 1.1 billion units, in line with its previous forecasts. Based on this calculation, it said it believed its market share grew around 2 percentage points to slightly more than 9 percent for the full year 2007 compared to 2006.
source
The Telefon AB LM Ericsson and Sony Corp. (SNE) joint venture said net profit for the three-month period came to $555 million. For the full year 2007, however, net income reached $1.6 billion, up around 12 percent from 2006.
Although it said the number of shipped units had climbed to around 18 percent in the quarter, compared with the same period in 2007, operating costs were $1.8 billion.
Sales for the quarter remained almost unchanged at $5.61 billion compared with the fourth quarter in 2006.
The company added however that it gained market share in the quarter, thanks to continued good demand of its higher end phones, including the K550 Cyber-shot, the W200, W300 and W580 Walkman phones in the Americas and Europe.
New Sony Ericsson President Dick Komiyama, who replaced Miles Flint on Nov. 1, called 2007 "a very good year," saying it highlighted how the company strategically positioned itself to capture market share with an expanded product portfolio.
"Investments are being made in both research and development and brand building, to deepen the portfolio and strengthen Sony Ericsson's presence in new and developing markets around the world."
He also reiterated the company's target to become one of the top three players in the industry.
Sony Ericsson said it expects the 2007 global handset market to reach over 1.1 billion units, in line with its previous forecasts. Based on this calculation, it said it believed its market share grew around 2 percentage points to slightly more than 9 percent for the full year 2007 compared to 2006.
source
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