Stockholm - Mobile telephone maker Sony Ericsson on Friday posted a loss for third quarter 2008, citing "challenging business conditions".

The group posted a pre-tax loss of 23 million euros (30 million dollars) for the quarter, compared to a pre-tax profit of 384 million euros for the corresponding business period in 2007.

Group turnover was 2.8 billion euros, down 10 per cent on third- quarter 2007, the joint venture between Japan's Sony and Sweden's Ericsson said.

Sony Ericsson said it sold 25.7 million handsets in the quarter, flat year on year, but slightly up compared to the 24.4 million handsets sold during the second quarter 2008.

The average selling price of the group's handsets was 109 euros, down from 116 euros in second quarter 2008 and 120 euros in third quarter 2007.

The group's share of the global market was estimated at 8 per cent, the same level as in the second quarter 2008.

Sony Ericsson repeated its earlier estimate that the global handset market in 2008 would grow around 10 per cent from more than 1.1 billion units in 2007.

Emerging markets were expected to account for the main growth.

Sony Ericsson chief executive Dick Komiyama said the group was continuing its cost-cutting measures and expected the savings of 300 million euros to have effect in the second half of 2009.

The joint venture was formed in October 2001. (dpa)