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Sony Slashes Guidance Due To Poor Smartphone Sales

Sony Slashes Guidance Due To Poor Smartphone Sales

Enterprise & IT Sep 17,2014 0

Sony on Wednesday said it expects a deeper than expected loss as a result of a 180 billion yen ($1.7 billion) impairment charge for its smartphone division. The company is now predicting a 230 billion yen ($2.15 billion) net loss for the year ending March 31, versus its previous forecast for a 50 billion yen loss. It expects an operating loss of 40 billion yen instead of a 140 billion yen profit flagged in July.

Sony's high-end Xperia mobile devices have not been increased in the U.S., mainly due to a lack of their availability througt carriers.

In July, Sony had again sharply cut its forecast for smartphone sales, dealing a stiff blow to one of the pillars on which it had hoped to rebuild its troubled electronics business.

In the April-to-June quarter, its mobile-phone unit posted an operating loss amid sagging sales, forcing Sony to cut its annual sales target to 43 million handsets.

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