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According to a report in AAP, the fourth largest mobile phone maker in the world Sony Ericsson has reported a 48 per cent drop in first-quarter net profits, citing slower sales growth in some of its markets.


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Despite the quarterly drop, Sony Ericsson, a joint venture established in 2001 by Japanese company Sony and Swedish telecommunications giant Ericsson said it expects the global handset market for this year to grow at a pace of about 10 per cent, from more than 1.1 billion units in 2007. The biggest growth boost is expected in emerging markets, it said.


Net profit for the three-month period that ended March 31 came to $US212 million down sharply from the same quarter last year.   Shipped units, which the company had already warned would be lower this quarter, reached 22.3 million, in line with the predicted 22 million units, although that figure was a 2 per cent increase compared to last year.


Because of the softer sales, the average selling price of high-to-mid end models in its key markets has dropped both sequentially and year-on-year, the company said.

 

 

The company’s market share was also thought to have reached 8 per cent in the first quarter, which it said was down 1 percentage point.


In an interview, Sony Ericsson President Hideki Komiyama said “We expect to see a positive effect from these announcements during the second half of 2008”, adding, “”Sony Ericsson continues to invest in expanding its product portfolio to appeal to a wider variety of consumers in both new and existing markets”.

 

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