Sony saw its smartphone volume dip yet again, although it remains profitable following its decision to more tightly focus its activities.
The company shifted 5.1 million units in the last quarter of 2016, down from 7.6 million in the prior-year period. It noted reduced volume in Europe and “unprofitable regions where downsizing measures were implemented” during the previous fiscal year.
Operating income for the Mobile Communications business during the October to December period of JPY21.2 billion ($188 million) was down from JPY24.1 billion, the decrease being attributed to the reduced sales, partially offset by cost reductions following restructuring, forex gains and reduced restructuring charges.
Sales for the quarter were JPY248.6 billion, down from JPY384.5 billion.
Having struggled to gain a foothold in the modern smartphone era, Sony decided to focus its efforts on what it previously tagged “high value-added models”. This was accompanied by cost cutting to fit its more focused strategy.
While it saw volumes and sales dwindle, the company shifted to operating profitability.
On a group level, Sony reported a net income of JPY20 billion compared with a prior-year profit of JPY120 billion after recording a JPY112 billion impairment charge related to its Pictures business. This followed a reassessment of future profitability in Motion Pictures.
Revenue of JPY2.4 trillion was down from JPY2.6 trillion, which was attributed “mainly due to the impact of foreign exchange rates”.