Handset maker Sony Ericsson announced first quarter losses of $382 million as sales fell by more than a third to $1.7 billion. The firm shipped 15.4 million units in Q1, 35 percent fewer than year-ago shipments. According to Sony Ericsson, it expects the global handset market to contract by at least 10 percent in 2009, down from 1.19 billion units in 2008; in line with the bleak forecast, the company said it plans to further reduce operating expenses by mid-2010 and cut another 2,000 jobs.

In conjunction with its Q1 earnings details, Sony Ericsson also offered new details on its Entertainment Unlimited [1] initiative. First announced in mid-February during Mobile World Congress, Entertainment Unlimited is based on three key elements: Integrating offerings like the Walkman music experience, Cyber-shot imaging, Java gaming and messaging into one offering; uniting mobile handsets with channels like TVs, PCs and home stereo systems to broaden the consumer experience; and offering unlimited sharing opportunities via web applications and the PlayNow content portal. Sony Ericsson said it will introduce its first Entertainment Unlimited device, the Symbian-based Idou [2], during the second half of 2009, adding it will make its next formal announcement on the project May 28.

For more on Sony Ericsson's Q1 results:
- read this release [3]