Sony Ericsson posted net income of $41.3 million on sales of $1.6 billion in the first quarter of 2005, compared to $105.9 million on sales of $1.7 billion in the year-ago first quarter. In the previous quarter, Sony Ericsson reported net earnings of $71 million on sales of $2.6 billion.

Sony Ericsson attributed the decline to falling average selling prices and the absence of introductions of higher margin new products. In addition, the Western Europe market declined slightly and shifted toward pre-paid phone products.

Units shipped in the quarter reached 9.4 million, 7 percent up from a year ago.