Sony Ericsson plays a weak handset

Ericsson on the tape this morning blowing up in mid-high priced handsets. Specifically, it appears the K850, their first phone with HSPDA (real 3G) and a 5 megapixel camera, is sucking wind.

This confirms some speculation that Ericsson was the weakness at Texas Instruments. I am still aware of weakness in the higher end of the Nokia supply chain so I wouldn't count the possibility of a Nokia margin miss out.

Nokia is down a couple pre-opening, trading below where I suggested shorting it. I think Nokia is struggling also but I think it's the best house in a bad neighborhood.

It's likely that the sell side will defend the stock down here. I'd take the Nokia short off for the time being and let them do it.