In June 2002, Sony Ericsson announced it would stop making Code division multiple access (CDMA) cellphones for the US market and would focus on GSM as the dominant technology. It also cut jobs in research and development in the USA and in Germany. In October 2003, it posted its first quarterly profit but warned that falling prices on phones and competition would make it difficult to stay in the black. Sony Ericsson's recovery is credited to the success of the T610 model. Although Sony Ericsson no longer makes CDMA cellphones for the global market, they still manufacture CDMA cellphones for Japanese market, mainly for au by KDDI.
Following the success of its P800 phone, Sony Ericsson introduced the P900 at simultaneous events in Las Vegas and Beijing in October 2003. It was pegged as smaller, faster, simpler and more flexible than its predecessor.
In March 2004, Ericsson said it would try to block its rival Nokia from gaining control of Symbian, an industry consortium that made operating software for smart phones.
In 2004, Sony Ericsson's market share increased from 5.6 percent in the first quarter to 7 percent in the second quarter. In July 2004, Sony Ericsson unveiled the P910 communicator with its integrated thumbboard, broad e-mail support, quadruple memory and improved screen.
In February 2005, Sony Ericsson president Miles Flint announced at the 3GSM World Congress that Sony Ericsson would unveil a mobile phone/digital music player in the next month. It would be called the Walkman phone and would play music file formats such as MP3 and AAC.