Sony Ericsson has released its Q4 financial results and is boasting of sales of more than 30.8 million handsets in the final three months of 2007.

The company also says it has enjoyed an 18% increase in volume year-on-year, with continued market share gains.

The results were far better than predicted as analysts had been concerned that the company's focus on low cost mobile phone handsets could have eaten into profits.

But Sony Ericsson said the average sales price of its mobile phones rose to 123 euros from 120 euros in the third quarter, beating forecasts for 121 euros.

However, it did add in a statement: "Although Average Selling Price increased slightly sequentially during the quarter, as a result of the introduction of new flag-ship Walkman and Cyber-shot phones such as the W910 and K850 models, the trend for falling ASPs year-on-year reflects the company’s direction to broaden its product portfolio".

Dick Komiyama, president of Sony Ericsson since 01 November last year, added that it is his company's ambition to become one of the top three players in the market - overtaking either Motorola, Samsung or Nokia.

In 2007, the company sold more than 100 million units worldwide, which is claims is more than double the global market growth rate.

It adds that 145 million music enabled phones have been sold to date, of which 57 million were Walkman phones.

The Q3 results for the company were also above expectations but analysts are now questioning what the future will hold for Sony Ericsson and what plans its new president has.

In the statement, he said only: "Investments are being
made in both R&D and brand building, to deepen the portfolio and strengthen Sony Ericsson’s presence in new and developing markets around the world", as well as in North America.

This year will also see the expansion of Sony Ericsson’s PlayNow digital content distribution application into a full service.