Strong sales once again drive Sony Ericsson profit growth. . .

21 Apr 2004

London-based Sony Ericsson Mobile Communications capitalised on the woes of leading player Nokia in the competitive global mobile phone market, shipping 8.8 million handsets in the first three months of this year, up 63% on the corresponding year-ago period, boosting sales by 66% to USD1.6 billion and lifting net profits to USD98.5 million. The company said the performance marked the third consecutive quarter in which it had turned a profit and came in the wake of Nokia’s disappointing Q1 financial results posted earlier this week. Sony Ericsson attributed its continued success to a strong mobile phone market where its products in the mid- and entry level brackets continued to gain momentum – and the positive effects of restructuring measures taken in 2003. In addition, it said that it anticipated continuing strong handset sales in 2004 and to that end raised its global estimate for mobile phone sales from 520 million units to over 550 million.