Sony (6758) Ericsson Mobile Communications AB, the mobile-phone joint venture being acquired by parent Sony Corp., reported its second quarterly loss in a year as competition in the Android smartphone segment increased.

The fourth-quarter net loss was 207 million euros ($266 million) compared with 8 million euros in profit a year earlier, the 50-50 handset partnership of Sony and Ericsson AB said in a statement today. Analysts had expected profit of 12.4 million euros, according to the average of seven estimates compiled by Bloomberg. Sales dropped 16 percent to 1.29 billion euros and missed the 1.69 billion-euro average of nine estimates.

Sony agreed in October to buy Ericsson’s stake in the 10- year-old joint venture for 1.05 billion euros to tap into demand for smarter consumer electronics after its main television business declined. The Tokyo-based company aims to compete with companies such as Samsung Electronics Co. (005930) by integrating the smartphone business with other home electronics such as the Xperia game consoles. London-based Sony Ericsson already makes an Xperia Play handset.

“Our fourth-quarter results reflected intense competition, unfavorable macroeconomic conditions” and floods in Thailand that disrupted production, Chief Executive Officer Bert Nordberg said in the statement.

The Sony acquisition is expected to close in late January or February after receiving regulatory approvals, the joint venture said.

Sony Ericsson shipped 9 million handsets in the quarter, 20 percent fewer than a year earlier, including low-end models that are being phased out. Average selling price was 143 euros, declining 14 percent from the third quarter. The company estimated its share of the Android-technology handset market at 10 percent in volume and 7 percent in value for the quarter.

To contact the reporter on this story: Diana ben-Aaron in Helsinki atdbenaaron1@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net