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Sony Ericsson Mobile's profits went down 61% with competition in prices getting stiffer.

First quarter profits fell to 32 million euros from 82 million euros for the same time last year.

According to a Bloomberg article,

The London-based company, which lost its position as the world's fifth-biggest handset maker to LG Electronics Inc. last year, is betting on new features such as music players to lift sales. After becoming profitable for the first time in 2003 when its camera-phones became popular, Sony Ericsson faces mounting competition and price pressure triggered by Nokia Oyj. The company expects phones with Sony's Walkman brand to help sales.

``The most crucial point to watch this year will be whether or not they can raise average selling prices and profitability by introducing these audio-visual capability enhanced phones, where they have an advantage over rivals,'' said Seiichiro Iwamoto, who manages about $9.7 billion in stocks at Fuji Investment Management Co. in Tokyo.

Ericsson went down 2.9% in afternoon trading.

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