Sony (NYSE: SNE) Ericsson (NSDQ: ERIC) expects to post a loss of between €390 million ($533 million) and €340 million ($465 million) for Q109 due to “weak consumer demand,” according to a profit warning issued this morning. The company plans to ship 14 million phones in Q1, at an average price of €120, but its profit margins are expected to drop on both a period-on-period and year-on-year basis—and the losses don’t include the expected restructuring charges of between €20 million and €10 million. At those sales levels, Sony Ericsson will sell barely half of the phones it sold last quarter. The drop is likely due, in part, to cost-conscious consumers, but also to the company’s mix of products, which mostly consist of feature phones, even though smartphone growth is on the rise.

It’s Q1 results are due on April 17, and based on today’s estimates, they will be even worse than its Q408 figures, when sales fell 21 percent and it had a $245 million loss. A new batch of rumors cropped up this week, questioning Ericsson’s commitment to the JV. The release didn’t hint at any separation, but continued losses will surely upset both sides of the equation. Release.