Mobile phone giant Sony Ericsson today reported falling profits for the second quarter, saying that continued high spending on research and development weighed on the bottom line.
Second-quarter net profit fell to €75m from €89m the same time last year. Pre-tax profit came in at €87m, down from €113m a year earlier, and compared with financial analysts' expectations of €92m.
The number of units shipped increased to 11.88 million from 10.40 million as the company's decision to broaden its portfolio paid off. This led to a rise in sales to €1.6 billion from €1.5 billion.
Sony Ericsson called the three month period a 'solid second quarter which saw the company gaining momentum as new products began to ship'. It said its market share had increased, but offered no details.
New phones, including ones equipped with high-resolution cameras, had been 'well received' by consumers. The company also said it would shortly ship a personal stereo phone, called the Walkman phone.
Last month Sony Ericsson had raised its sales forecast for the world's mobile phone market to 720 million units in 2005 from 690 million, a prediction it reiterated today.
