Sony Ericsson predicts weaker demand

Sony Ericsson reiterated that it expects 10% industry volume growth in 2008, due largely to the low-end emerging markets, a Reuters report said.

Sony Ericsson also said the growth is a slowdown from the estimated 14% growth experienced in 2007.

Sony Ericsson, a joint venture between Japan-based Sony and Sweden's Ericsson, shipped 22 million phones in the first quarter, but its market share slipped to 8% from 9% in the fourth quarter.

The Reuters report further quoted Sony Ericsson EVP Anders Runevad as saying that recovery is 'still weak in the middle to high end, but it's too early to make that call.'

Sony Ericsson suffered a sharp drop in earnings in the quarter due to a slowdown in the higher-end markets of Western Europe.