Ericsson

Hit Models Boost Sony Ericsson Performance

Pressmeddelande   •   Okt 17, 2005 09:19 CEST

Highlights:
* Solid growth & market share gain
* Increased R&D investment generating expanded portfolio
* Strong demand across portfolio


The consolidated financial summary for Sony Ericsson Mobile
Communications AB (Sony Ericsson) for the third quarter ended
September 30, 2005 is as follows:


Q3 2004 Q2 2005 Q3 2005
Numbers of units shipped (million) 10.7 11.8 13.8
Sales (EURO m.) 1678 1614 2055
Income before taxes (EURO m.) 136 87 151
Net income (EURO m.) 90 75 104


Units shipped in the quarter reached 13.8 million, a 29% increase
compared to the same period last year and a 17% increase
sequentially, substantially higher than sequential market growth.
Sales for the quarter were Euro 2,055 million, representing a
year-on-year increase of 22%. Income before taxes was Euro 151
million and net income was Euro 104 million, which represents a
year-on-year increase of Euro 15 million and Euro 14 million
respectively. The company continued to increase investment in
marketing and R&D to support the expansion of the portfolio going
forward.

Sony Ericsson began to reap the rewards of earlier increased
investment in R&D, expanding the product portfolio with hit models
like the K750, the award-winning 2 megapixel, auto-focus camera
phone, the first Walkman(TM) phone, the W800, which has been
exceptionally successful, and the K600 series, which has brought
Sony Ericsson UMTS handsets into the mid-tier price category. The
company grew faster than the market during the quarter with the
popularity of higher-end phones having a positive effect and
raising the profile of more affordable, volume models like the
T290, J210 and K300. Average Selling Price (ASP) rose during the
quarter reflecting the proportion of higher-end products entering
the product mix.

The global handset market continued to grow faster than expected,
and Sony Ericsson is upgrading its global market outlook for 2005
to over 760 million units.

"This has been a good quarter for Sony Ericsson, proving that our
strategy of expanding the product portfolio upward into
best-in-class imaging, music and 3G products while increasing the
number of more affordable and attractively designed volume models
is paying off. We are increasingly benefiting from the
opportunities created by the joint-venture, and with three new
Walkman® phones shipping in the fourth quarter (W550, W600, W900),
we are optimistic that Sony Ericsson can set the standard in music
as well as imaging going forward," said Miles Flint, President of
Sony Ericsson.

Walkman® is the registered trademark of Sony Corporation

Sony Ericsson Mobile Communications serves the global
communications market with innovative and feature-rich mobile
phones, accessories, PC-cards and M2M solutions. Established as a
joint venture by Ericsson and Sony in 2001, with headquarters in
London, the company employs approximately 5,000 people worldwide,
including R&D sites in Europe, Japan, China and America. For more
information, please visit www.SonyEricsson.com

CONTACTS:

Investors/Analysts
Ericsson Investor Relations
Gary Pinkham (Stockholm) +46 8 719 0000

Sony Investor Relations
Takao Yuhara (Tokyo) +81 3 5448 2180
Chris Hohman (London) +44 20 7444 9711

Press/Media
Ericsson External Relations
Pia Gideon (Stockholm) +46 8 719 2864

Sony Corporate Communications
Koji Kurata (Tokyo) +81 3 5448 2200

Sony Ericsson Corporate Communications
Aldo Liguori (London) +44 208 762 5860
Merran Wrigley (London) +44 208 762 5862

This press release contains forward-looking statements that involve
inherent risks and uncertainties. We have identified certain
important factors that may cause actual results to differ
materially from those contained in such forward-looking statements.
For a detailed description of risk factors see Sony's and
Ericsson's filings with the US Securities and Exchange Commission,
particularly each company's latest published Annual Report on Form
20-F.