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Record quarter caps a record year for Sony Ericsson |
whizkidd
Joined: May 14, 2004
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From: India
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17 January 2007
Q4 Highlights:
Year-on-year volume & sales growth of over 60%
Income before tax up 144% year-on-year
Hit products drive market share gains
2006 Highlights:
Volume & sales grow to 74.8 million units and 10,959 million Euros respectively, double the global market growth rate
Income before taxes grows to 1,298 million Euros
60 million music enabled phones, including 17 million Walkman phones sold
Strong growth in Latin America, Asia Pacific and Europe
The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the fourth quarter ended December 31, 2006 is as follows:
Q4 2005 Q3 2006 Q4 2006 FY05 FY06
Number of units shipped (million) 16.1 19.8 26.0 51.2 74.8
Sales (EURO m.) 2,310 2,913 3,782 7,268 10,959
Income before taxes (EURO m.) 206 433 502 512 1,298
Net income (EURO m.) 144 298 447 350 997
Units shipped in the quarter reached 26.0 million, a 61% increase compared to the same period last year, generating significant year-on-year market share gains. Sales for the quarter were Euro 3,782 million, representing a year-on-year increase of 64%. Income before taxes for the quarter was Euro 502 million representing a year-on-year increase of 144%. Net income for the quarter was Euro 447 million.
Sony Ericsson increased market share during the quarter due to the continued success of products such as the K800/K790 Cyber-shot™ phone and Walkman® phone line-up. Average Selling Price (ASP) was slightly higher than expected due to more favourable than expected market conditions and continuing strong demand for Sony Ericsson’s hit model handsets. Particularly strong growth in emerging markets in Latin America and Asia Pacific, as well as in Europe, illustrates Sony Ericsson’s success at expanding the portfolio to increase market share in new markets with attractive mid-tier products, and without undermining profitability.
"The fourth quarter saw Sony Ericsson finish a strong year with record volumes, sales and net income due to the soaring popularity of our imaging and music phones. Earlier investments in R&D and marketing have enabled us to expand the portfolio and strengthen the brand to increase consumer and operator appeal. Our target is to become one of the top three players in the industry, and the momentum we established in 2006 makes this an achievable ambition,” said Miles Flint, President of Sony Ericsson.
Sony Ericsson estimates the 2006 global handset market as being around 980 million units, higher than previous forecasts of over 950 million units for the year. On this basis the company believes it has outperformed the market during the quarter, gaining around 1% of market share sequentially, to achieve a global market share of approximately 9% during Q4. In Q4 2006 Sony Ericsson grew market share slightly over 2% against the same period for the previous year.
During the fourth quarter Sony Ericsson announced it had reached agreement in principle to acquire the Swedish software company UIQ Technology AB, a wholly owned subsidiary and business of Symbian Ltd. Sony Ericsson expects the transaction to be completed during the first quarter 2007.
http://www.sonyericsson.com/spg.jsp?cc=global&lc=en&ver=4001&template=pc3_1_1&zone=pc&lm=pc3_1&prid=7012 |
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bart
Joined: Feb 03, 2002
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From: Flanders
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only 6m less then samsung. their could be a change to pass samsung during 2007. if SE indroduces a lot of new phones, expands their line and we buy them. this year we have to buy more SE phones then other years.
i already bought 2 SE phones this year. (one K800i 007 for myself, and a J220i as a 2nd phone for my dad).
With Ericsson and Nokia gone: we must keep their spirits alive and buy JOLLA or YOTA |
London Andy
Joined: Jan 05, 2007
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From: London
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It is good to see that the after 5 years the company has found the right suit.
It as been a long road of trying different concepts, working methods and production lines.
You can sense that SE fells much stronger and more confident on the market now then what they ever done the past years.
2007 will be a very interesting year with lots of new models and a strong marketing campaign in a effort to break more ground in the market shares.
It is just a mater of time before SE WILL pass Samsung and closing the cap on Motorola and Nokia.
And to Apple I can just say, GOOD LUCK. |
shaliron
Joined: Jan 15, 2006
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From: Melbourne, Australia
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Well SE's heading the right way. Market share is something, but SE have managed to increase profits and average selling price in the process. Nokia and Motorola only have huge market shares at the expense of profit.
Good result due to a larger mid range portfolio.
A wooden spoon is a spoon made from wood. Source: WikipediaWinner of: Best Thread (Huge SE Portfolio) 2007, Best Post (Huge SE Portfolio) 2007, Best Signature 2007, and 2nd Best Nickname 2007. |
ajack
Joined: Apr 22, 2002
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Sony Ericsson Mobile Communications AB chief executive Myles Flint said the company is now the number 3 handset maker in terms of sales value, having overtaken Samsung in the fourth quarter.
http://www.hemscott.com/news/[....]/item.do?newsId=38534446690992
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goldenface
Joined: Dec 17, 2003
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From: Liverpool City Centre
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@London Andy.
I agree. Excellent set of results, I'm pleased for them. If good handsets become hit sellers then market share will come naturally. I don't think SE should focus on market share gains at this stage.
It has to be said that the Sony and Ericsson union has been a success. 
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bart
Joined: Feb 03, 2002
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From: Flanders
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samsung sold 32m phones during Q4. meaning SE hasn't passed them yet
With Ericsson and Nokia gone: we must keep their spirits alive and buy JOLLA or YOTA |
goldenface
Joined: Dec 17, 2003
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From: Liverpool City Centre
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@Bart. Official sales figures are calculated to include unit inventory, meaning phones laying unsold in storage in shops. Miles Flint is saying that in sales terms (of handsets that have actually been sold to the end user), he's saying SE is number 3.
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ajeetpv
Joined: Apr 23, 2006
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From: India
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means samsung have more number of phones in stores than SE.  |
bart
Joined: Feb 03, 2002
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really?
With Ericsson and Nokia gone: we must keep their spirits alive and buy JOLLA or YOTA |
goldenface
Joined: Dec 17, 2003
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Thats right.
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El_Coyote
Joined: Jan 16, 2007
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This makes sence. I work for a Danish mobile operator, and we've sold so many w810i's up to christmas that you wouldnt believe it. |
bart
Joined: Feb 03, 2002
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but for danish people it makes sence, they are very smart people. they are also the most happy people of the world.
so shouldn't we open up some bottles? i mean SE nr3. |
Residentevil
Joined: Feb 29, 2004
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From: Raccoon City, USA
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I am very please to read that, because:
a.) I hope some of that money finds itself back into customer service and repair and having good programmers for the phone sw and fw.
b.) I hope T-mobile US will pick up the SE brand again, because two years ago they dropped it because of quality problems they said.
Tough times don't last, tough people do!
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Dups!
Joined: Sep 24, 2006
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From: GMT +2
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Wonderful news and good results for SE. I still say by year end the number 3 slot in terms of the market will belong to SE.
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Posted: 2007-01-17 10:19
