Sony Ericsson CEO sees no ray of hope

BANGALORE, INDIA: Weakening European economies could hit the mobile industry, handset-maker Sony Ericsson's chief executive has said.

"This is a concern. If the consumer confidence problem continues, it is hurting the mobile industry," Bert Nordberg told Reuters in an interview on Friday.

While the outlook for consumer spending has worsened in recent weeks, analysts have changed their fourth-quarter cellphone sales forecasts only slightly, with a Reuters poll finding that they expected a historically normal 12 per cent quarter-on-quarter rise.

When asked how the crisis might affect the holiday sales-fueled fourth quarter, Nordberg said: "I am not confident at all. It's very hard to predict."

Earlier, the No. 9 phone maker reported third-quarter profit in line with expectations and was tight-lipped about a report that electronics giant Sony was set to take full ownership of the brand.

Last week, a source with direct knowledge of the matter told Reuters that Sony was in talks to buy Ericsson's 50 per cent stake in the joint venture.