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Missed Expectations for Sony-Ericsson

Published torsdag 12 juli 2007 kl 11.25

Sony Ericsson, the world’s fourth-biggest mobile phone maker, missed expectations with a 55 percent jump in quarterly profits after it shifted focus to sales of lower-priced phones to gain market share.

But the strategy helped widen the potential customer base of the cellphone venture of Sweden’s Ericsson and Japan’s Sony Corp., known for higher-end music phones based on its Walkman brand.

The weaker than expected profit came shortly after bigger rival Motorola Inc. warned investors of a quarterly loss, blaming weak phone sales.

Sony Ericsson said it increased its share of the mobile phone market by about 3 percentage points from a year ago to 9 percent in the latest quarter with market share gains in Latin America, throughout Europe, and in the Middle East and Africa.

The company said it expects the 2007 global handset market to exceed 1.1 billion units.

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