Back in black: Sony Ericsson reports profit for first quarter
Despite a 28% drop in shipments to 10.5 million units in the first quarter, Sony Ericsson returned to profitability in the three month period. The launch of two well reviewed handsets has really helped turn things around for the joint venture. The duo's first Android powered model, the Xperia X10, was released in Europe. The company has high hopes for this flagship handset, equipped with a 4 inch display and the Timescape and Mediascape interfaces. Add to that the launch of the Vivaz which is a Symbian S60 powered device with an 8.1MP camera that captures video in HD. The acceptance by customers of those two phones and good sales of existing models led the joint venture to raise its Average Selling Price by 12% from the prior year. The bottom line was that Sony Ericsson earned 21 million Euros (approximately $25 million U.S.) in the first quarter, up from a loss of 167 million euros in the prior three month period and a loss of 293 million Euros from last year's first quarter. Part of the reason for the improvement was the four fold rise in gross margin from last year. The profit was the first for the joint venture after 7 straight quarters of red ink.