Sony set for loss on weak mobile performance

Sony set for wider loss on weak mobile performance

17 SEP 2014

Sony is set to record a charge of JPY180 billion ($1.7 billion) in its Mobile Communications unit, following a review of its device activities.

In line with this, it intends to change its strategy in certain geographies, concentrating on its premium lineup and reducing the number of models in its mid-range portfolio.

According to Reuters, this will be accompanied by a headcount reduction in the mobile unit of around 15 per cent – it had previously been looking to expand this business.

Sony said its previous plan was “focused principally on achieving significant sales growth”. This has now been modified to “address the significant change in the market and competitive environment of the mobile business”.

Under the new regime, the overarching strategy for the unit has been “revised to reduce risk and volatility, and to deliver more stable profits”.

Sony has already revealed it saw a tough start to the year, shipping 9.4 million smartphones in fiscal Q1—down from 9.6 million in the prior-year period. It also reported an operating loss in the devices unit.

According to reports earlier this year, Sony is looking to work with fast-growing device silicon vendor MediaTek for its mass-market devices.

On a group level, the company is now forecasting a loss of JPY230 billion for the year to 31 March 2015, compared with its earlier forecast of a JPY50 billion loss, and reflecting the additional JPY180 billion charge.

Its sales forecast remains unchanged, at JPY7.8 trillion.

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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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