Sony Ericsson issues profit warning

Sony Ericsson has issued a profit warning for the first quarter on 2009, on the back of weak consumer demand in the current negative global economic climate.

The company still plans to put around 14 million mobile handsets into the market by the end of March, but projected that gross margin and net income would decline compared to the same period in 2008.

In a statement, the company said: “Although final results may differ, Sony Ericsson plans to ship approximately 14 million phones during the first quarter of 2009 with an estimated ASP (average selling price) of EUR 120. Gross margin is expected to decline both year-on-year and sequentially. Net income before taxes is estimated to be a loss in the range of EUR 340 – 390 million, excluding restructuring charges in the range of EUR 10 – 20 million,”

The company, established as a equal share joint venture between Sony and Ericsson in 2001, will announce its first quarter 2009 results on April 17.

The company sold around 98 million phones globally in 2008, and currently has operations in over 80 countries.