Handset maker expects pre-tax loss of 340-390 million in 1Q09 as sales slump.
Sony Ericsson says it will sell 14 million mobile phones in 1Q 2009, down significantly from Reuters analyst estimates of 15.5-21.8 million back in January.
As such, the company has warned that its gross margin is expected to decline both year-on-year and sequentially.
Net income before taxes is estimated to be a loss in the range of 340-390 million euros, excluding restructuring charges in the range of 10-20 million euros.
Sony Ericsson has been hit hard by a double blow of increasing competition and the current economic climate.
It's not the only one in trouble, however. Nokia has been trimming back its operations since last year and even APple is expected to fell the pinch of lower iPhone demand this year.
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Sony Ericsson will announce its 1Q09 financial results on April 17.
