Sony Expects to Lose $2.1 Billion This Fiscal Year, Due to Poor Smartphone Sales - News
by William D'Angelo , posted on 17 September 2014 / 5,824 Views
Sony has increased its forecast for losses for the current fiscal year which ends March 31, 2015. Sony had originally forecasted a loss of ¥50 billion ($466 million), but is now expecting a loss of ¥230 billion ($2.1 billion).
"The previous MRP was focused principally on achieving significant sales growth," Sony said in a statement. "The new MRP was modified to address the significant change in the market and competitive environment of the mobile business.
"Under the new MRP, the overarching strategy for the MC segment has been revised to reduce risk and volatility, and to deliver more stable profits. This revision includes changing the strategy of the MC segment in certain geographical areas, concentrating on its premium lineup, and reducing the number of models in its mid-range lineup."
The huge increase in losses is due to poor smartphone sales. Sony made an impairment charges of ¥180 billion ($1.7 billion).
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A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. Outside, in the real world, he has a passion for the outdoors which includes everything from hiking to having received his B.A. in Environmental Studies. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.
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..................Sony makes phones?
I actually have a Sony Xperia phone. It´s okay, but nothing special.
@Yusei
I think that this is exactly the problem... It's either Apple or Samsung, these days... Sony doesn't have a uniqe selling proposition to make their Xperia special. I think they should shift gear or quit.
Yeah, they are pretty nice.
Honestly both Sony and HTC make better phones than Samsung and Apple now. They just can't beat the marketing and brand recognition.
People are all focussed on the wrong number. $2 billion is not actually how much money Sony will lose this year, it's a book loss not a cash loss. What should actually concern people is the announcement that they are forecasting an operating loss (cash flow negative), when previously they had forecast an operating profit. The book losses are all part of Sony restructuring, which Sony hasn't handled well, esp wrt PR. But the silver lining has always been projections of positive cashflow. It's a way smaller number so it doesn't grab the headlines, but it is the one that tells us whether Sony's day to day business is able to produce results once the restructuring dust has settled.
inb4 Sony becomes only the PlayStation brand in 5 years time.
How about Sony makes the Xperia available on all carriers. Being locked to T-mobile is stupid. I'd probably buy one.
Sony should ask Microsoft for help on how to make money.
How is Microsoft's phone business doing?
They profit billions as a company regardless of how the phone division is doing. They know how to make money. That's the point I was trying to make.
Don't worry, the Destiny bundle will profit $4 billion.
Nothing to see here!
With Samusong and Apple having the lion-share of the smartphones industry. I guess it's better for sony to drop their phone division. Just focus gaming and movies section of the company. That's where the real money is.
I want to say I'm surprised, however even with the PS4 killing it seems Sony cannot change its money losing ways.
Queue "Sony is selling it's smartphone division"
Sony seems to be losing everywhere almost except for gaming.... lol
rip Nintendo and sony
