Mobile telephone maker Sony Ericsson reported a drop in first quarter results for 2005 on Friday. The joint venture between Japan's Sony and Sweden's Ericsson reported a net income of 32 million euros (41 million dollars) for the first quarter, compared to 82 million euros for the corresponding period in 2004. Sony Ericsson reported a turnover of 1.29 billion euros (1.65 billion dollars), down 4 per cent on the corresponding quarter in 2004. The company said it sold 9.4 million handsets during the quarter, a 7 per cent increase on the 8.8 million units sold during the same period last year. The company said inventory built up among retailers in the fourth quarter of 2004 had spilled over into the first quarter and created a more competitive market environment. However, "there is good growth potential in the market, both from new subscribers and from consumers who are upgrading their mobile phones," Sony Ericsson President Miles Flint said. Sony Ericsson was formed in 2001 in an effort to challenge industry leaders Nokia and Motorola.
