J
Jeff Causey
Guest
Sony released their latest quarterly financial report revealing struggles continue for their Mobile Communications division. For the second quarter of their fiscal year, Sony saw sales of smartphones decrease by 15.2% with revenues falling from 329.5 billion yen ($2.7B USD) to 279.2 billion yen ($2.3B USD) compared to the same period in 2014. Perhaps more troubling is the fact that for the sales that continued to occur, Sony saw operating income of 5.5 billion yen ($45.4M USD) fall to an operating loss for the division in the amount of 20.6 billion yen ($170M USD) year-over-year.
According to Sony, the “significant decrease” in smartphone sales is due to a decision to focus on profitability instead of trying to expand their scale of operations. In terms of operating income impact, Sony thinks they have improved their product mix to focus on higher end “value-added” smartphone models and they reduced their marketing and R&D expenses. All of the changes the division has been undergoing resulted in an increase in restructuring charges, which contributed to the loss.
Despite the sliding sales numbers and impact on operating income, Sony says their annual sales forecast is unchanged. For 2014, Sony sold 39.1 million units and they are predicting sales of 27 million units for 2015. From Q1 to Q2, smartphone unit sales fell from 7.2 million to 6.7 million in 2015. For the same periods in 2014, Sony sold 9.4 million and 9.9 million units respectively.
source: Sony
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