Sony Ericsson issues profit warning for 2Q

Shares of the Stockholm-based company tumbled nearly 10 percent to 60 kronor ($10.02).

Ericsson cited "moderating demand" for mid-to-high end mobile phones, as well as delays in the quarter in the shipping of new products.

The company said it would break even before taxes.

It was Sony Ericsson's second profit warning this year. In March it warned of similar problems, which led the company reporting a 48-percent drop in first-quarter net profits.

Sony Ericsson reports second-quarter results on July 18.

The news comes on the heels of disappointing results from Treo smart phone maker Palm Inc., which Thursday reported a fiscal fourth-quarter loss and lower revenue which missed Wall Street expectations. The Sunnyvale, Calif.-based company said sales of cheaper Centro phones are strong, but higher-margin Treo sales have slowed.

Blackberry maker Research In Motion Ltd. also this week reported quarterly profit which missed analysts expectations.

When the company released first-quarter results, it said it expected the global handset market for this year to grow at a pace of about 10 percent, from more than 1.1 billion units in 2007.