Sony Ericsson says components shortage hits feature

HELSINKI Tue Nov 8, 2011 4:35pm GMT

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HELSINKI (Reuters) - Sony Ericsson said on Tuesday a shortage of key components will limit the production of some of its feature phones in the key holiday sales period.

A spokesman for the world's ninth-biggest handset maker did not specify which components were in short supply but said the problem was not related to the Thai floods which are hurting the electronics industry just when it has recovered from Japan's eathquake and tsunami.

"We are experiencing a shortage of key components used in some feature phones," the spokesman said, adding that the phones affected are the txt, txt pro and Mix Walkman models.

Last month Sony agreed to buy Ericsson out of their 10-year old venture which has shifted its focus to manufacturing smartphones, but feature phones still make up some 20 percent of its sales volumes.

Analysts said the component problems were likely to be peculiar to Sony Ericsson as it struggles with winding down the feature phone business and that there are no wireless industry-wide component shortages.

"We have not heard of any supply chain constraints affecting feature phone devices," said Gartner analyst Carolina Milanesi.

Shares in Ericsson were 0.1 percent lower at 70.20 crowns, underperforming a 1.4 percent firmer STOXX 600 Europe technology sector index.

(Editing by Erica Billingham and Greg Mahlich)