The handset maker reports a net loss of €25m, down from a net profit of €267m a year ago, gross margin fell 9pp to 22% due to fierce competition and slowing market growth in mature markets. Sales dropped 10% to €2.8bn, following the decline in average selling price to €109. Sony Ericsson shipped 25.7m units in the quarter, down 1%. Its market share remained flat at about 8%. The main concerns for Sony Ericsson are its exposure to mature markets with high-value Walkman and Cybershot branded phones that have now little to differentiate them from the competition, stronger competition from new entrants in the high-end consumer handset market where it has previously done well.