This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sweet Music at Sony Ericsson

Cell phone sales keep rockin' as Sony Ericsson turns up the music.

The mobile-phone joint venture of Sony (SNE - Get Report) and Ericsson (ERICY) reported blowout numbers Thursday for the second quarter, which ended in June. The Stockholm-based company also boosted its industrywide handset sales forecast for 2006 to 950 million units from 900 million.

Analysts point to Sony Ericsson's sleeker phone designs and the strength of its music players for the company's second-quarter success. The report also gives industry watchers a good temperature reading as mobile phones continue to conquer the world.

For the quarter, Sony Ericsson shipped 15.7 million phones. That's a third more than a year ago and an 18% sequential increase from the first quarter. Revenue for the period was 2.27 billion euros ($2.89 billion), well ahead of analysts' expectations for 2.13 billion euros. Net income in the quarter rose to 143 million euros, from 109 million in the prior quarter, and nearly double the year-ago level.

The company claims it added market share in the quarter. Lehman Brothers analyst Tim Luke figures Sony Ericsson captured 6.8% of the market, up from 6.2% in the previous quarter. The gains may have come at the expense of larger rivals like Nokia (NOK - Get Report) and Motorola (MOT).

No. 2 player Motorola in particular has enjoyed nearly two years of market-share success, riding on the popularity of its slim Razr phones. But some observers see a strong challenger in Sony Ericsson's Walkman phones.

Music is coming up huge for Sony Ericsson, says Charter Equity Research analyst Ed Snyder in a note Thursday.

"Its success in spurring much higher sales, revenue and profits is an early indication of what will happen in the wider market once Nokia and Motorola release sleek handsets with strong MP3 functions," writes Snyder of Sony Ericsson's Walkman effort.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
NOK $7.62 0.00%
SNE $30.01 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs