Phone Trouble: Sony Ericsson Q2 Warning

Trouble in the mobile phone business continue to mount.

Following up on disappointing results this week from both Research In Motion (RIMM) and Palm (PALM), Sony Ericsson (SNE, ERIC) this morning said that sales and pre-tax net income in the second quarter would “continue to be negatively affected by moderating demand of mid-to-high end mobile phone,” as well new product delays.

The company expects to ship 24 million phones in the second quarter, with an ASP of 115 Euros. Gross margin will be down both sequentially and year-over-year; the company expects to break even in the quarter before taxes. (The company notes that it sold over 100 million phones in 2007.)

This morning, Ericsson is off 74 cents, or 6.8%, to $10.12, while Sony is down $1.09, or 2.4%, to $44.46. Palm, which reported weak results after the close yesterday, is down 46 cents, or 7%, at $6.08. RIMM, which fell $18.88 yesterday, is down another $5.91, or 4.8%, to $117.55. Nokia (NOK) is down 82 cents, or 3.3% at $24.24; Apple (AAPL), which fell $9.13 yesterday, is down another $2.22, or 1.3%, to $166.04.