Sony Ericsson profits rise on Android sales

Sony Ericsson logged strong sales of its Xperia X10 and Vivaz smartphones

Sony Ericsson has reported second-quarter profits of €12m (£10.1m), largely due to the introduction of higher average selling prices for its mobile devices, which offset a drop in sales.

The positive gains mark the mobile phone maker's second consecutive profitable quarter, reversing the €213m (£179.9m) loss reported this time last year.

Sony Ericsson pointed to the success of its Xperia X10 and Vivaz smartphones running the Android and Symbian operating systems respectively.

"These models, along with the Xperia X10 mini and Xperia X10 mini pro, which started shipping at the end of the second quarter, have been well received by operators, and we are now well positioned for long-term growth," said Sony Ericsson president Bert Nordberg.

The average selling prices for these devices rose 31 per cent, from €122 (£103) in the second quarter of 2009 to €160 (£135) today.

However, despite the gains, the results fell short of analyst expectations of €50m (£42.2m) net profit and €1.8bn (£1.5bn) in sales, as polled by Dow Jones.

The total number of units shipped fell 20 per cent year on year to 11 million, which the firm put down to the reduction in size of its product portfolio. Market share remained flat at around four per cent.

Sony Ericsson claimed that a restructuring programme launched in 2008 is on track to cut annual operating expenses by €880m (£743m) by the end of this year. The programme will see the loss of 4,000 jobs by the end of 2010.

The company forecast "slight growth" in units in the global handset market in 2010.