Sony Ericsson: Cellphone market still in free fall

Sony Ericsson, the handset design and manufacturing joint venture between the two companies, posted dismal earnings for the second quarter. By far the most important figure in the earnings release: the units shipped dropped 43 percent to 13.8 million.

Sony Ericsson posted a quarterly pre-tax loss of 283 million euros. That compares to a profit before tax of 8 million euros in the same period a year ago. The company confirmed its forecast that global handset sales will drop 10 percent in 2009.