Christmas might not be so good for Sony Ericsson. Some days back, Sony Ericsson Satio was removed from shelves by many UK retailers due to reported problems with the handset.

Now, the world’s fourth biggest mobile phone manufacturer is having issues with the Aino. The problems are associated with the touchscreen on the Sony Aino and although Sony Ericsson has acknowledged the problem saying that they will have a solution soon, it will surely hit their sales and repute badly.

The company, which has suffered a Eur 199 million loss in the last quarter, was hoping to improve its fortunes through the end of year sales as UK is a vital market for Sony Ericsson, being the largest in Europe.

Carphone Warehouse and Phones4U have already stopped the sales of Satio due to increasing rate of return for the phones. Both of them represent all the main mobile phone networks and manage a significant number of smaller websites. This has caused a great setback for the mobile phone company.

Whatever the reasons may be, Sony needs to sort out its issues as fast as possible as there are a number of other smartphones coming out soon, including the X10, that could either make or break the company.

The worst part is that the new phones will be using Android, a completely new platform for Sony Ericsson, which could lead to even more trouble.