This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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) 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) 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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,700.05 +343.18 1.98%
S&P 500 2,049.62 +36.73 1.82%
NASDAQ 4,727.0710 +82.7590 1.78%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs