Sony Ericsson reports first quarter 2011 results

Highlights:
* Shift to Android-based smartphone portfolio drives profitability
* Smartphone share of total sales more than doubled year-on-year
* Xperia(TM) arc, Xperia(TM) PLAY and Xperia(TM) neo began shipping towards
the end of the quarter
* Some supply chain disruption due to the Japan earthquake

The consolidated financial summary for Sony Ericsson Mobile Communications AB
(Sony Ericsson) for the first quarter ended March 31, 2011 is as follows:

   Q1 2010  Q4 2010  Q1 2011

Number of units shipped (million) 10.5 11.2 8.1
Average selling price (Euro) 134 136 141

Sales (Euro m.) 1,405 1,528 1,145

Gross margin (%) 31% 30% 33%

Operating income (Euro m.)  20 39 19

Operating margin (%) 1% 3% 2%

   Restructuring charges (Euro m.) -3 -3  -

   Operating income excl. restructuring charges (Euro 23 43 19
m.)

   Operating margin excl. restructuring charges (%) 2% 3% 2%

Income before taxes (IBT) (Euro m.) 18 35 15

   IBT excl. restructuring charges (Euro m.) 21 39 15

Net income (Euro m.) 21 8 11

Bert Nordberg, President & CEO of Sony Ericsson commented, "Sony Ericsson´s
profitability continues as we accelerate our shift towards an Android-based
smartphone portfolio, with smartphones comprising over 60% of our total sales
during the quarter. Towards the end of the quarter we introduced the highly
anticipated Xperia(TM) arc and Xperia(TM) PLAY, which have been well received by
both operators and consumers around the world. However, the Japan earthquake
made it a challenging quarter operationally and we are experiencing some
disruptions to our supply chain. We will continue to evaluate the situation."

Units shipped during the quarter were 8.1 million, a 23% decrease year-on-year
and a 28% decrease sequentially, due to a decline in the number of feature
phones shipped, introduction of new products towards the end of the quarter and
seasonality.

Average selling price (ASP) for the quarter was Euro 141, a 5% increase year-on-
year and a 4% increase sequentially, as a result of product and geographical mix
more than offsetting price erosion.

Sales for the quarter were Euro 1,145 million, a 19% decrease year-on-year and
25% decrease sequentially.

The gross margin for the quarter was 33%, an increase of 2 percentage points
year-on-year and an increase of 3 percentage points sequentially, which includes
the impact from higher ASP and benefit of some larger than normal items relating
to royalty matters and warranty estimates.

Income before taxes for the quarter was a profit of Euro 15 million, a decrease