JAPANESE-SWEDISH venture Sony Ericsson, the world's fourth largest mobilephone maker, posted record fourth-quarter earnings on strong demand for music and camera phones and said it aimed to break into the top three.

The handset maker, owned by Sweden's Ericsson and Japan's Sony Corp said it expected global mobile phone sales to grow about 12 per cent for 2007, calling the figure cautiously optimistic.

While Sony Ericsson's report was upbeat, industry leaders Nokia and Motorola are expected to have been pressured by intense competition on pricing. Motorola, ranked number two, recently issued a fourth-quarter profit warning.

Sony Ericsson's pretax profit rose to a record €502 million ($829.9 million), exceeding the average forecast of €428 million ($707.5 million) in a Reuters poll and €206 million ($340.5 million) in the corresponding period of 2005.

Source:http://www.news.com.au/business/story/0,23636,21078347-462,00.html