Ericsson fell from fourth to
sixth place in global handset shipments in Q2 this year but saw its smart phone shipments soar by 15.4% in the same period.
An analysis of Sony Ericsson's Q2 shipments for 2010 by technology analyst iSuppli, published this week, reveal that while shipments rose 4.8% compared to the first quarter, rivals Research in Motion and ZTE surpassed Sony Ericsson due to larger
The manufacturer's Q3 results out last week show the fall in global shipments continuing to fall by 5% on Q2.
However Sony Ericsson
achieved a 15.4% increase in smart phone shipments during the second quarter
making Sony Ericsson the fourth fastest growing smart phone brand during the
The manufacturer’s fall in
overall ranking and growth in the smartphone sector reflects the company’s
strategic shift away from lower-margin, higher-volume products and toward more
profitable devices, according to iSuppli
Tina Teng, senior analyst
for wireless communications at iSuppli said: ‘With its shift in focus from
volume to value-add, Sony Ericsson is positioning itself to cash in on the
fastest growing and most profitable segment of the global wireless market. Given
that cell phone penetration has reached 73.4% of the earth’s population,
shipment growth is slowing markedly. Meanwhile, average pricing for mobile
phones has declined to extremely low levels and will continue to decrease in
the coming years. In contrast, smart phones and feature phones continue to
offer fast growth and strong profit margins.’
Sony Ericsson smartphone
sales have more than doubled in the second quarter compared to the same period
last year, representing 13.6% of Sony Ericsson’s total mobile handset shipments
in the second quarter of 2010.
Although the Average Selling
Price (ASP) slipped by 3.8% in the third quarter compared to the second
quarter, its gross margin and operating profit rose again. The company’s gross
margins amounted to 30% in the third quarter, compared to 16% a year earlier.
Sony Ericsson’s third-quarter operating profit market equaled 4%, up from 2% in
the second quarter and a 4% decline in the third quarter of 2009.
Sony Ericsson’s smart
phones sales made up more than 50 percent of its total sales in the third