Sony Ericsson in new profit warning

Fourth placed mobile handset vendor Sony Ericsson warned of continued market pressures this week, as the Japanese / Swedish joint venture said it would only break even during the second quarter.

The company said that its net sales and net income before taxes would continue to be negatively affected by poor sales of its mid to high end handsets, in combination with a delay of new products.

This is the second profit warning this year, after the company took a knock that sent its net income down to Eur133m, from Eur254m in the same period last year during the first quarter.

Sony Ericsson said it plans to ship approximately 24 million phones during the second quarter, with an estimated ASP (average selling price) of Eur115.