Sony Ericsson has reported Q3 sales down but profit up as its smartphone strategy started to take hold.
The manufacturer reported its results for the third quarter ended 2010 today (15 October).
The company shipped 10.4 million handsets during the period – down 26% from a year earlier and down 5% on Q2. Sales were €1.6bn, slightly down on the same quarter in 2009 and down 9% sequentially.
However, profit increased to €66m, up from €63m in Q2 2010 and a €198m loss in Q3 2009. Average selling price increased 34% year on year and decreased 4% sequentially to €154m due to ‘product and geographical mix’.
The manufacturer said 50% of its sales are now higher value smartphones. Sony Ericsson added that it is its ambition to be ‘the global number one handset provider’ on the Android platform.
Sony Ericsson said it maintains a forecast of ‘slight growth in units’ in the global handset market in 2010.
Sony Ericsson CEO Bert Nordberg said: ‘Our third consecutive quarter of profitable results illustrates that Sony Ericsson’s overall performance is stabilising. Our strategy to focus on the smartphone segment is succeeding and smartphones now comprise more than 50% of our total sales. During the quarter, we launched our Android based Xperia models in new markets, such as China and the U.S., and it is our ambition to become the global number one handset provider on the Android platform.’