Sony Ericsson reports dip in Q3 profits

Mobile phone maker Sony Ericsson Mobile Communications' third-quarter profit slipped as it sold more lower-priced phones, an Associated Press report said.

The Associated Press report said the company earned 267 million euros ($377.7 million) in the July-September period compared with 298 million euros ($423 million) a year earlier.

The company blamed the decline in profit on a defection to its low- to mid-range priced phones which, on average, cost around 120 euros ($170), cheaper than the premium range, the report said.

The company's high-end phones, including its P1 smart phone and the W580 slider Walkman phone, which can cost significantly more, sold well but not enough to offset the imbalance with its lower-priced phones, it added.

Sales rose to 3.1 billion euros ($4.39 billion), up nearly 7% from 2.9 billion euros ($4.1 billion) in the third quarter of 2006, the report said.

The company said it shipped 25.9 million cell phones worldwide, an increase of 31% from the 19.8 million phones shipped a year ago. The company said it saw solid gains worldwide, including in key markets in Europe, North America and Latin America, the report said.