Sony expecting massive, $2.1bn loss due to its smartphone division

[Scorpus]

Sony has once again revised their forecast for this financial year, quadrupling their expected losses thanks to a $1.7 billion "impairment" that relates to their smartphone division. On top of their earlier prediction, Sony is now anticipating a loss as high as 230 billion yen (US$2.1 billion).

The company's smartphone division was originally focused on "achieving significant sales growth", however it appears as though that strategy hasn't exactly worked out. Moving forwards, Sony will now focus on delivering stable profits by reducing risk, concentrating on flagship devices, and cutting down on the number of mid-range devices on offer.

As part of the company's statement outlining the revision to their expected financial losses, Sony outlined a reason behind the poor performance of their mobile communications unit. According to them, a "significant change" in the competitive smartphone market meant that a shift in strategy was necessary to become profitable once more.

One of the devices Sony is hoping will improve their fortunes is the Xperia Z3, which is set to launch in a few weeks' time. The smartphone is the company's flagship for the second half of the year, and packs only a few minor changes over the Xperia Z2 from earlier this year.

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https://www.techspot.com/news/58100-sony-expecting-massive-21bn-loss-due-to-its-smartphone-division.html

 

[cmbjive]

It's hard to compete when your phone isn't from Apple or some Korean company.

 

[Skidmarksdeluxe]

I wonder why their mid range devices aren't as popular their top end devices, you'd think that's where they'd make their money.

 

[Arris]

I'd love an Xperia Z3 or Z3 compact. But the Nexus 5 isn't really needing replaced. Shame it's such good value for money otherwise I'd be seriously tempted to grab a Sony. Their new tablet looks pretty tasty too. Nice colour reproduction for use with photography. Hope their plans pay off as I'd hate to see such a giant of the technology age fade away. Would be the same as Kodak disappearing. Time was when if you wanted the best computer monitor or TV you got a Sony Trinitron

 

[Neojt]

Also there are not all that available compared to iphones or Samsungs

 

[Marty LK]

Sony's marketing system is probably at fault for the loss. Being only available at Sony.com makes them much less available to would-be buyers.

Sony should consider setting up storefronts in Best Buy like Samsung and Microsoft do.

 

[IAMTHESTIG]

Yeah their devices aren't really advertised much anymore. I do have a Xperia Z1 and am very happy with it. I have a bad habit of getting my phone wet so this has been a worthy investment for me.

 

[Ranger1st]

I've got the Z and it's an awesome phone, better then the Galaxy 3 I had before it, ( and the LG 930 I had as an interim. The LG actually fried it's self to death internally). the OEM android mods, the integration of external camera lenses and even the PS3 controller integration is seamless.. love this phone. looking forward to the Z3 upgrade.

 

[davislane1]

I actually forgot Sony makes phones. You'd think with the Playstation ads they run everywhere their mobile division would be more well known.

#RemarksThatShouldHaveBeenMadeDuringProductPlanning

 

[axiomatic13]

I would love to have a Sony phone but they aren't competitive on price and for the same reason I only buy Nexus devices from Google, I want those OS updates DAY 1.

 

[Guest]

Make the Z compact series around $400 and count me in. I can't afford $600 for a phone every year!