Sony Ericsson has reported a second consecutive quarterly profit, driven by sales of its Xperia X10 and Vivaz smartphones.
The world's fifth biggest handset manufacturer reported second-quarter pretax profit of €31m after slashing costs and revamping its portfolio over the past year. The company lost €283m during the same quarter in 2009.
It launched the Xperia X10 and Vivaz smartphones in the first quarter of this year, and the Xperia X10 mini and Xperia X10 mini pro started shipping at the end of the second quarter.
Sales for the quarter were €1.757m, a 25% increase sequentially and a 4% increase year on year. It shipped 11 million phones during the period, a 5% increase sequentially and a 20% decrease year on year due to the ‘reduction in size of the product portfolio’.
Average selling price (ASP) increased 19% sequentially and 31% year-on-year to €160 during the quarter due to ‘improved product and geographical mix, as well as positive currency effects’.
The company said its transformation programme, which began in mid-2008, is now in its final stages and ‘on target’ to reduce annual operating expenses by €880m by the end of the year.
Since the start of the program, Sony Ericsson has reduced its global workforce by approximately 4,000 people to reach a total workforce of around 7,800 by 30 June 2010.
Market share for the quarter remained flat and is estimated to be around 4%. Sony Ericsson maintained its forecast of slight growth in units in the global handset market in 2010.
Sony Ericsson president Bert Nordberg, said: ‘Our second quarter results show that the company continued the momentum seen in the first quarter as a result of our focus on the value market and the success of new smartphones; Xperia X10 and Vivaz, launched during the first quarter. These models, along with the Xperia X10 Mini and Xperia X10 Mini Pro, which started shipping at the end of the second quarter, have been well received by operators and we are now well positioned for long term growth.’