According to the high-street retailers, a high number of handsets were returned after customers discovered accessing certain applications caused the phone to power down.
The 3.5in touchscreen handset has a 16:9 widescreen display and a 12.1Mp camera.
Sony Ericsson said the software issue could not be resolved with an over-the-air patch and that a "fairly low" number of phones were returned compared to the number that had been sold.
Richard Dorman, senior marketing manager at Sony Ericsson, told The Times the company expects the problem to be resolved by Christmas.
"Sales of the product have been very strong and we expect them to remain strong once the problem has been fixed."
Both Phones4U and the Carphone Warehouse said customers returning faulty Satio handsets would receive a new phone.
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