The 50-50 venture between Sony and Ericsson shipped 24.9 million phones in the quarter, a 59% increase. The average selling price fell 14% to 125 euros ($171.9m), though the company did not disagree with the suggestion that this figure was derived by dividing total sales by the number of units shipped, inflating the price of each handset by adding in an unspecified figure for the sales of accessories.

The fourth largest mobile phone maker said it increased its market share in the quarter by 3 percentage points to more than 9%. It said it is sticking to its forecast the global mobile handset market this year will reach 1.1 billion units.

Sony Ericsson president Miles Flint said the company continues to capture market share in a more competitive market place with a product offering that addresses a wider consumer audience. He said he expects the market to remain competitive, but with recently announced products, he said the company aims to grow faster than the market.

Some analysts are tipping Sony Ericsson and the third placed handset maker Samsung to topple Motorola from its number-two spot after its admission yesterday that second-quarter handset sales will be down 35%, and it does not now expect its handset division to return to profitability this year.