Mixed news for Sony Ericsson fans. The company has just published its first quarter results, and while the company has sold 28% fewer handsets in Q1 2010 than the same time last year, it's managed to generate an income of 20 million euros, compared to a loss of 369m euros in Q1 2009.

The company says that its strategy is to considerably decrease the size of its catalogue and focusing on higher-end handsets that bring in more cash per unit. As such, the average selling price of each handset has risen 12% from last year, as new flagship models come out - including the X10 and the Vivaz.

The company's president, Bert Nordberg, said: "We are pleased to see the positive impact of both the launch of new products and the business transformation programme improving the company’s results. The Xperia X10, our first android-based Communication Entertainment device featuring signature Sony Ericsson applications Timescape and Mediascape, and Vivaz, a beautifully designed, touch-screen Symbian phone started shipping towards the end of the quarter".

The company also recently announced the Zylo and Spiro handsets.