Sony Ericsson struggled following the launch of iPhone by Apple in 2007, and was also overtaken by its South Korean rival LG electronics in 2008. Sony Ericsson market share dropped dropped from 9.4% to 7.9%, profit dropped by 43% while sales fell 8%. These falls occurred despite favorable conditions in the handset market in 2008.

To what extend could any of the problems faced by Sony Ericsson by 2008 have been expected?