The figure reflects the ongoing decline of Sony Ericsson in the device market. The firm said its market share was over five per cent in the second quarter, compared to six per cent in 1Q. It's the world's fifth largest device maker.

More alarmingly, unit sales showed a decrease of 43 per cent year-on-year, although this does chime with market-wide contraction.

Sony Ericsson's pretax loss of 283 million euros was in line with expectations, including one million euros in restructuring charges. It said cost cutting and a better product mix had contributed to losses shrinking from the 358 million euros of the previous three months.

The firm also expects to reap the benefits of a revamped product line-up during the second half of 2010. It is finally moving away from its reliance on Walkman and Cyber-Shot brands with three new feature rich phones; Aino, Satio and Yari. These handsets integrate communications features with entertainment content and social media applications.

In addition, Sony Ericsson is expanding PlayNow arena with an application store, downloadable movies and unlimited music.