Sony Ericsson finally seems to be on the right track. The mobile phone maker earlier Friday reported its second quarterly net profitin a row following several quarters of falling market share and heavy losses, helped by cost cuts and successful launches of new premium phones.

The handset vendor recently ramped up its high-end presence with devices like the Xperia X10 flagship phone, and over the past two years has slashed its workforce by a third, to around 8,000. Though Sony Ericsson's sales volume and market...