Sony Ericsson continued along the road to recovery during 2Q10, reporting its second consecutive profit as rising ASPs offset lower unit shipments during the period.
The firm overturned a net loss of €213 million in 2Q09 with a profit of €12 million in 2Q10, as sales grew from €1.6 billion to €1.7 billion in the most-recent quarter.
Higher ASPs of €160 contributed to the increased sales figure, offsetting a 2.8 million drop in unit shipments to 11 million year-on-year.
President Bert Nordberg said shipments were lower because the firm had reduced its portfolio of devices, but said its focus on so-called “value” devices and the popularity of new smartphone models was paying off, leaving the vendor “well positioned for long term growth.”
Operating margins hit 2% in 2Q10, up 1% sequentially and a significant improvement on the 16% loss recorded in 2Q09, as a cost-reduction program started in 2008 begins to bear fruit.
Nordberg said the scheme is on-track to cut operating expenses by €880 million by end-2010.
Analysts took solace in the fact the firm reported its second consecutive net profit, despite the fact the figure fell well short of the €50 million many had forecast, WSJ.com reports.
Sony Ericsson estimates its market share in 2Q was flat compared to 1Q, at around 4%, and the firm stuck by its forecast of modest growth in the global handset market through 2010.
Analysts predict global device sales will grow 11.6% year-on-year in 2010, Reuters reports.