Sony Ericsson sees profit margins fall

Swedish-Japanese mobile handset maker Sony Ericsson, which has changed tack to target the mid-range market, announced Thursday a more than 10 percent fall in net profit in the third quarter.

The group said that net profit totalled €267 million ($379 million dollars) in the three-month period, a 10.4 percent drop over 12 months.

Sales increased by 6.6 percent to €3.1 billion, with the new strategy leading to a 31 percent jump in the number of handsets sold, but with a sharp fall in profit margins.

Sony Ericsson was previously focused on the sale of high-end handsets and the group said the average sales price of one of its phones had fallen to €120 in the third quarter from €147 12 months earlier.