Sony Ericsson believes that a new focus on smarpthones has helped bring about a return to profitability in the first quarter of 2010.

Sony Ericsson has recorded $28 million (£18.1m) in earnings – a huge turnaround from the €293 million (£256m) loss in the same quarter of 2009 – shows the increasing effect of high end phones in the market.

Sony actually shipped more than a quarter (27.5 per cent) fewer phones in the same period last year, but people were prepared to spend more money, more than making up for the shortfall.

Satio and Vivaz

Sony Ericsson's higher end phones include the Xperia X10 and Vivaz, smartphones which have performed well for the company.

"Both models have been well received by global customers," said Bert Nordberg, the president of Sony Ericsson

"Increases in both gross and operating margins show that we are on the right track to build the correct cost structure for our business organization and strategy."

Via WSJ