Most of Sony Ericsson’s sales growth last year came from low end phones, according to the company’s 2007 results. Sony Ericsson announced it had sold 103.4 million phones during 2007, an increase from the 74.8 million it shipped in 2006. Although the number of phones sold in 2007 increased by 38%, the total value of sales only increased by 18%. Average price of handsets sold last year fell from £109.7 in 2006 to £93.9 in 2007.
Sony Ericsson estimates the global handset sales for 2007 to be 1.1 billion units. Based on this, its market share would be just over 9%, a two percentage point increase from 2006. The company’s operating income for the year was £1.16 billion, up from £0.95billion in 2006. Gross margins were at 30.6%.
The most successful handsets in 2007 were K550 Cyber-Shot, and the W200, W300 and W580 Walkman, according to the company.
Sony Ericsson announced its intention to increase its emphasis in mobile content, with the expansion of its PlayNow digital content distribution application into a full service proposition during 2008. It has sold 145 million phones to date, of which 57 million were Walkman phones.