Beleagured handset maker Sony Ericsson has posted much worse than expected 4Q08 financials and has delivered a grim forecast for the market as a whole in 2009.

Pre-tax losses totalled 261 million euros, compared to a Reuters analyst poll forecasting a 72 million euro loss. In 4Q07 Sony Ericsson posted a pre-tax profit of 501 million euros.

But it's the company's 2009 outlook that makes for the grimmest reading - Sony Ericsson estimates the global handset market grew six per cent in 2008 to 1.19 billion units, where it had previously forecast growth of ten per cent.

Sony Ericsson President Dick Komiyama said: "We foresee a continued deterioration in the market place in 2009, particularly in the first half."

In addition to general economic conditions, Sony Ericsson issued two profits warnings last year. The company had been accused of relying too heavily on its Walkman and Cyber-shot ranges at the expense of expanding into new areas.

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