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

[Half Monk 697]

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.