Sony Ericsson reports massive losses as phone sales crash 40%

Sony Ericsson also announced losses of €836 million for the whole of 2009. The company has now reported losses for six quarters in a row.

The company blamed its performance as being 'mainly due to a downturn in the global handset market and a faster than anticipated shift to touch screen phones in the mid-priced sector of the market.'

In other words, Sony Ericsson was yet another traditional mobile vendor, which got caught out by the success of the iPhone.

Sony Ericsson president, Bert Nordberg said that the company was working on a recovery, which would involve producing Android-based smartphones as well as cost-cutting.

'We will continue to focus on returning the company to profitability by establishing Sony Ericsson as the communication entertainment brand based on an exciting portfolio of mid- and high-end products, such as our recently announced Android-based phone, the Xperia X10,' he said.