Sony Ericsson issues profit warning

Sony Ericsson, the joint venture between Japan's Sony and Sweden's Ericsson, issued a profit warning because of falling high-end phone sales thanks to certain component shortages. Consumers are spending less in developed countries because of a slowing U.S. economy. Sony Ericsson said it expects to ship 22 million devices during the first quarter with an average selling price of about $188.

"As discussed during our fourth quarter 2007 Media and Analyst Call, the market is proving to be challenging," said Sony Ericsson President Dick Komiyama. "This has been more pronounced in the mid- to high-end replacement sector of the market in Europe, where Sony Ericsson has stronger-than-average market share."

For more on Sony Ericsson's warning:
- read this report from the WSJ (sub. req.)