Sony mobile unit turns a profit despite unit sales slip - Mobile World Live

Sony mobile unit turns a profit despite unit sales slip

28 APR 2017

Sony shipped just 14.6 million smartphones in the year to 31 March, after a “significant downsizing” of its sales in unprofitable regions.

This compares with shipments of 24.9 million units in the year to end-March 2016.

However, the consumer electronics giant’s Mobile Communications unit reported a JPY10.2 billion ($91 million) operating profit in the recent 12 month period, compared with a JPY61.4 billion loss in the prior year.

Sales decreased 32.7 per cent year-on-year to JPY759.1 billion, due to unit sales declines in Europe, the Middle East and Latin America, as well as its refocus on profitable markets.

Costs were reduced following restructuring, and profitability benefited from the focus on fewer geographic areas and on high value-added models. There was also a JPY26.1 billion gain from foreign exchange.

For fiscal Q4, the mobile business reported a loss of JPY15.2 billion, compared with a prior-year loss of JPY42.1 billion, on sales of JPY155.9 billion, down 14.9 per cent.

The company anticipates an 8 per cent increase in sales in the current financial year, but with its profit halved to JPY5 billion due to foreign exchange changes and component price increases, partially offset by reduced operating costs.

Unit shipments are expected to increase to 16.5 million.

Sony already unveiled a new flagship device for 2017, its Xperia XZ Premium, which picked up plaudits at Mobile World Congress 2017.

On a group level, the company reported a fiscal year profit of JPY73.3 billion, halved compared with the prior year, on revenue of JPY7.6 trillion, down 6.2 per cent.

The sales decline was attributed to foreign exchange rates: at constant currency sales were flat, with growth in Game & Network Services and Semiconductor offsetting the mobile shrinkage.

Profitability was also impacted by an impairment charge in the Pictures segment, offset by gains in mobile and Game & Network Services.


Steve Costello

Steve works across all of Mobile World Live’s channels and played a lead role in the launch and ongoing success of our apps and devices services. He has been a journalist...More

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