Sony Ericsson hopes to capitalise on Walkman brand

The firm, a joint venture between Sony of Japan and Ericsson of Sweden, benefited from offering more phones at low and medium-price levels.

Profit was 87m euros in its second quarter, down from 113m euros a year ago.

The firm sold 11.8 million units in the quarter - 1.4 million up on a year ago.

Market share

We are feeling very confident about the Walkman..it's a question of how quickly we can ramp up production Miles Flint, chief executive

Miles Flint, chief executive of the firm, said: "Our market share increased 1% between the first and second quarters, taking it to about 7%."

He said: "Whereas in the first quarter, we had a relatively mature product range, we now have a fresh portfolio of half a dozen models."

Mr Flint said the firm's two-megapixel camera with autofocus, the K750, was selling well as was its candy-shaped phone for third-generation mobile (3G).

Walkman hopes

The firm launches its Walkman music phone in late July/early August, starting with the Asian market, and offering it elsewhere a few weeks later.

Mr Flint said: "We are feeling very confident about the Walkman..it's a question of how quickly we can ramp up production."

It plans to introduce a second Walkman phone early in the fourth quarter in time for Christmas. It will be a clamshell phone, with a slightly lower price that can store up to 100 tracks.

The firm upgraded its 2005 forecast for the total mobile phone market to more than 720 million handsets, from 690 million.