Sony Ericsson Double 2nd quarter 2006 earnings

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Sony Ericsson announced that its earnings for the second quarter—$181 million—nearly doubled its earnings from the year-ago quarter, while revenue increased more than 40 percent and handset shipment volumes increased by 33 percent. The results exceeded financial analysts’ expectations.

The handset vendor said its improved shipments (15.7 million units), revenue ($2.9 billion) and earnings were due to sales of three new Walkman phones—models W300, W700 and W42S—and an updated W810 model.

Sony also said that its average selling price declined sequentially with sales of lower-tier models J100, J220 and J230. The low-end phones broadened the vendor’s portfolio, which in the past has typically been characterized by mid- and high-tier handsets. ASPs generally are declining across the industry.

Sony Ericsson, which garnered the fifth-largest market share in the world last year, has reversed years of losses with a string of successful quarters. The company pursues only the GSM air interface, having dropped CDMA technology three years ago. The company does not break out sales by region, so it remains unclear what proportion of its sales came from the United States.

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