As if finanical issues weren't enough to worry about, Sony Ericsson's flagship device is causing trouble at two UK-based phone retailers.

Carphone Warehouse and Phones4U have halted sales of the Sony Ericsson Satio handset due to high customer complaints and returns.  Billed as a "software glitch," the phone is reportedly powering down when certain applications are accessed.  According to those familiar with the matter, the issue can't be fixed by an over-the-air (OTA) software update.  Richard Dorman, senior marketing manager at Sony Ericsson, admitted that the company is aware of the issue and expects to have it fixed by Christmas. 

Despite the ordeal, Dorman says that Sony Ericsson has no plans to cut back on their advertising campaign, which shows individuals taking pictures with the Satio's 12-megapixel camera.  Both the Carphone Warehouse and Phones4U will be offering new devices to those displeased with the Satio and will work with the manufacturer to get the device back on retail shelves as quickly as possible.  If you're up for trying the device despite the software issues, it can still be purchased directly from Orange, T-Mobile, and Vodafone.

Via: Engadget Mobile, Times Online