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Sony Ericsson sells over 100 million handsets in 2007 |
goldenface
Joined: Dec 17, 2003
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From: Liverpool City Centre
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Sony Ericsson sells over 100 million handsets in 2007
16 January 2008
Q4 Highlights:- 18% increase in volume year-on-year
- Continued market share gains and profitable growth
- Continued investment for the future
2007 Highlights: - Over 100 million units sold – more than double global market growth rate
- Margins remain strong as company shifts to broader portfolio
- Unit growth underpinned by increased sales of lower priced phones
- 145 million music enabled phones sold to date, of which 57 million were Walkman® phones – maintaining leadership in music
The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the fourth quarter ended December 31, 2007 is as follows:
Units shipped in the quarter reached 30.8 million, a 18% increase compared to the same period last year, generating continued sequential and year-on-year market share gains. Sales for the quarter were Euro 3,771 million, in line with sales a year ago reflecting a strategic shift to a greater proportion of lower priced handsets in the product portfolio. Income before taxes for the quarter was Euro 501 million in line with a year ago. Net income for the quarter was Euro 373 million.
Sony Ericsson gained market share during the quarter due to the continued success of such products as the K550 Cyber-shot™ and the W200, W300 and W580 Walkman® phones in the Americas and Europe. Although Average Selling Price (ASP) increased slightly sequentially during the quarter, as a result of the introduction of new flag-ship Walkman® and Cyber-shot™ phones such as the W910 and K850 models, the trend for falling ASPs year-on-year reflects the company’s direction to broaden its product portfolio.
“Sony Ericsson finished a very good year, which highlighted how the company has strategically positioned itself to capture market share with an expanded product portfolio. Investments are being made in both R&D and brand building, to deepen the portfolio and strengthen Sony Ericsson’s presence in new and developing markets around the world. Our target remains to become one of the top three players in the industry, and the momentum we established in 2006 and 2007 makes this a realistic and achievable ambition,” said Dick Komiyama, President of Sony Ericsson.
Sony Ericsson estimates the 2007 global handset market as being over 1.1 billion units, in line with previous forecasts. On this basis the company believes it grew market share around 2 percentage points to reach slightly over 9% for the full year 2007 compared to full year 2006.
During the fourth quarter Sony Ericsson announced that it had entered into a series of agreements with Motorola, Inc. whereby Motorola acquired 50% of the share capital in U.I. Holdings BV, the Dutch owner of the Swedish software company UIQ Technology AB, which was acquired by Sony Ericsson from Symbian Ltd. earlier in the year. The transaction was ratified by the appropriate competition authorities during the quarter.
Sony Ericsson announced a number of new products during the quarter including high-end W890 Walkman® and the K630 and the K660 HSDPA web phones. The company also announced its strategy to expand Sony Ericsson’s PlayNow™ digital content distribution application into a full service proposition during 2008.
On November 1, 2007 Sony Ericsson’s president Miles Flint stepped down and Hideki ‘Dick’ Komiyama joined the company to replace him. Dick Komiyama joined Sony Ericsson from Sony Corporation where he was Director, Chairman, Sony Electronics Inc., USA, and Executive Vice President of Electronics Marketing and Sales Strategies of Sony Corporation, Japan.
WALKMAN® and Cyber-shot™ are trademarks or registered trademarks of Sony Corporation
[ This Message was edited by: goldenface on 2008-01-16 10:05 ] |
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masseur
Joined: Jan 03, 2003
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From: Sydney, London
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these results look good although I notice average sale price has reduced so the margins have not increased at the same level as sales
all in all though, not a bad year for 
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mazi
Joined: Feb 24, 2006
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Well done
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SilveR.
Joined: May 03, 2002
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I think SE can do much better this year...
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Krubach
Joined: Dec 05, 2002
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From: Sunny Portugal! :)
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I guess SE is going for market share and not profits...
[addsig] |
goldenface
Joined: Dec 17, 2003
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From: Liverpool City Centre
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I think all companies ultimately aim for increases in both market share and profits.
I was expecting to hear something positive from 'Dicky' regarding a return to high-cost devices this year but he only said he was going after the higher cost handset consumers in developing markets.
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max_wedge
Joined: Aug 29, 2004
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From: Australia
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On 2008-01-16 11:04:43, Krubach wrote:
I guess SE is going for market share and not profits...
they are going for both. Low profit margin can mean higher profits overall if you increase the volume of sales enough to cover the lower profit margin per unit. This is what many of us have been saying is behind SE's increase in handset choice in the midrange market segment. They are expanding the mid range to appeal to a wider range of users, therefore increase marketshare (and overall profits) at the expense of the high profit margins SE have demanded in the past.
By increasing marketshare, they increase profitibility even though they run on lower profit margins. This is what Nokia have been doing for years. High volume low profit margin is a well established business practice providing you can maintain a decent marketshare. And since SE marketshare continues to rise, their strategy seems to be working.
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Mizzle
Joined: Oct 06, 2006
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Yes, definitely. First build up a good brand and a large variety of customers and then the prices can be set a bit higher with more specs in the phones of course. Exactly what Nokia did with the N-series devices and to some extent with the E-series
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technical-expert
Joined: Mar 13, 2007
Posts: > 500
From: Pacific Rim
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All ready Se prices are Sky rocketing.Imo they should seriously lower their prices
Sony Ericsson announced a number of new products during the quarter including high-end W890 Walkman
High end.lol 
i'm expert
[ This Message was edited by: itouch on 2008-01-16 10:51 ] |
bodeh6
Joined: Dec 14, 2006
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From: U.S.A
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Nice job SE. Theres a blow to all those doubters.
So SE used 2007 to get a better market share, then
in 2008 we will see some high end devices.
And they actually made more money in 2007 then 2006. So that will fund
more phones for 2008.
[ This Message was edited by: bodeh6 on 2008-01-16 11:51 ] |
bart
Joined: Feb 03, 2002
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From: Flanders
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i'm surprized. i never thougt they would get passed the 30m
but they at what cost, look at their phones, look at how many people are unhappy and clain never to buy SE again.
With Ericsson and Nokia gone: we must keep their spirits alive and buy JOLLA or YOTA |
razec
Joined: Aug 20, 2006
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From: Pearl of the Orient Seas
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On 2008-01-16 12:49:05, bodeh6 wrote:
Nice job SE. Theres a blow to all those doubters.
So SE used 2007 to get a better market share, then
in 2008 we will see some high end devices.
And they actually made more money in 2007 then 2006. So that will fund
more phones for 2008.
[ This Message was edited by: bodeh6 on 2008-01-16 11:51 ]
I hope you're right with your first paragraph 
~19 years at Esato |
goldenface
Joined: Dec 17, 2003
Posts: > 500
From: Liverpool City Centre
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On 2008-01-17 06:51:04, bart wrote:
i'm surprized. i never thougt they would get passed the 30m
but they at what cost, look at their phones, look at how many people are unhappy and clain never to buy SE again.
The fact that its growing faster than the market overall might tell us they are doing something right. Plus,I wouldn't say any other OEM isn't without their own set of issues.
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SilveR.
Joined: May 03, 2002
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There is some unhappy SE users, only some. if you don't like it, then don't get it, If I'm unhappy with my SE phone I would do a refund and change to other brand.. But I'm SE users since T68i. I think SE knows what to do to keep their users..
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bart
Joined: Feb 03, 2002
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From: Flanders
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no SE doesn't know, they've lost it.
its been explained by many oldies quite alot.
your starte with a T68i thats the begining of SE, the begining of the slow down in inovation.
With Ericsson and Nokia gone: we must keep their spirits alive and buy JOLLA or YOTA |
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Posted: 2008-01-16 10:12
