Sony Ericsson Profits Higher Than Originally Expected; Helped by Asian Smartphone Sales

Sony Ericsson has posted sales and pre-tax profits higher than what had been estimated by analysts based on strong smartphone sales in Asian markets.

According to an article on Business Week, the company, which is a joint venture between Sony Corp. and Ericsson AB, posted a pre-tax profit of 31 million Euros, which is 53 percent less than what it was a year ago, but more than what the analysts had estimated.

The company also reported sales of 1.6 billion Euros, which were significantly more than the 1.36 billion sales analysts had estimated.

Sony Ericsson, fighting a battle with Apple’s iPhone, has relied on Google’s Android platform, to keep it afloat in the global smartphone market. The company has encountered weak consumer demand in the Western European market.

“I must say that Asia is going well for us,” said Chief Executive Officer, Bert Nordberg during a telephonic interview. “Western Europe is very, very weak. Western Europe is clearly suffering from consumer confidence, that's our view.”

The company has lined up a huge line of a smartphones this year. The company has already launched a PlayStation branded device. Sony, which has a 50 percent stake in the company, is planning to acquire the entire company for itself, bringing it under its banner.