Sony might be doing pretty well for itself thanks to incredible sales of the PlayStation 4, but it seems elsewhere in Sony’s business things aren’t doing too good, so much so that the company has quadrupled their forecast loss for the financial year in a profit warning that they’re blaming on poor smartphone sales.
Sony described the revised forecast as “the impairment of goodwill in the mobile communications segment,” which if you’re not familiar with business garble means that Sony took another look at its Xperia smartphone business and realised it’s in a worse shape than Sony originally thought it was in. Now here’s some more financial garble for you:
The impairment that Sony has discovered amounts to 180 billion yen, which in GBP amounts to around £1.04 billion, but that’s not what Sony initially thought the smartphone side of their business would lose. In July the company said it expected to make a loss of 50 billion yen for the financial year, but that’s all changed as the company is now thinking that it’ll make a loss of 230 billion yen, close to £1.3 billion. Because of this dismal forecast the company now expects an operating loss of around 40 billion yen instead of the previously forecast 140 billion yen profit.
It seems that Sony have been too busy celebrating over how well the PlayStation 4 is doing rather than keeping tabs on its other businesses, at least that’s my thought anyway. In reality it’s mostly because Sony’s smartphones aren’t quite as appealing as the likes of Apple’s iPhone, Samsung’s Galaxy Phones, and HTC’s One, a device which has been coined the best Android phone on the market. Another reason for the loss could be due to Sony’s Xperia devices being exclusive to T-Mobile in the US, the fourth biggest phone network.
What’s in store for Sony’s smartphone line? Perhaps they’ll do with those what they did with their VIAO laptop range and sell off that side of the company to someone else. Right now it’s unknown how Sony plan to resolve this issue, but if more information arises, be sure to check n3rdabl3!