Walkman maker Sony Ericsson has reported a quarterly net loss of  €187 million euros ($245 million) following a sharp drop in shipments. In Q4 2007, the company posted a €373 million profit.

Sales dropped 23 percent to €2.91 billion, while the number of units shipped fell 21% to 24.2 million due to slow demand. It also claims the industry average selling price is continuing to decline.

Sony Ericsson thinks the global handset market grew 6 percent in 2008, although it growth was earlier projected at 10 percent, and it expects the market to further contract in 2009.

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