goneforever Posted September 17, 2014 Report Share Posted September 17, 2014 Sony Quadruples Forecast Loss for financial yearXperia smartphones to blame. PlayStation maker Sony has quadrupled the amount of money it expects to lose this financial year in a profit warning it blamed on smartphones. Sony described it as "the impairment of goodwill in the mobile communications segment", which means it had another look at its Xperia smartphones business and found it in even worse shape than it thought it was in. The impairment amounts to 180 billion yen - or a whopping £1.04 billion - and this is how it affects Sony's bottom line: in July the company said it expected to make a loss of 50 billion yen for the financial year. Now, it reckons it'll make a loss of 230 billion yen - or £1.3 billion. It now expects an operating loss of 40 billion yen instead of the 140 billion yen profit it forecast in July. While the PlayStation business - fuelled by the success of PlayStation 4 - continues to perform well, the wider Sony Corporation is struggling. This is the sixth downward revision under boss Kaz Hirai, who took the top job on in 2012 promising to return the company to profit. Something needs to be done about those pesky smartphones, then. Reuters suggests sales of the Xperia have suffered in the US in particular because they're only available on T-Mobile there - the fourth largest carrier. Sony's answer is to focus on its premium lineup and reduce the number of mid-range models. Source : Eurogamer Link to comment Share on other sites More sharing options...
lastAvenger Posted September 17, 2014 Report Share Posted September 17, 2014 Time to hive off another unit. Cellphone market is over crowded in particular Android and it's very difficult to compete. They need to get rid of it like they did with Vaio Link to comment Share on other sites More sharing options...
phreak Posted September 17, 2014 Report Share Posted September 17, 2014 That's almost a whole Mojang. lol. wonder how long they can keep up with such massive losses Link to comment Share on other sites More sharing options...
goneforever Posted September 17, 2014 Author Report Share Posted September 17, 2014 That's almost a whole Mojang. lol. Link to comment Share on other sites More sharing options...
playstation Posted September 17, 2014 Report Share Posted September 17, 2014 Sony should just become movie production company and video gaming company. Rest of electronics usske bas ka baat nahi...not because they dont make good stuffs just that they cant remain competitive . Link to comment Share on other sites More sharing options...
Sach4life Posted September 17, 2014 Report Share Posted September 17, 2014 One thing to note in all this : " The company is recording an "impairment charge" of 180 billion yen ($1.7 billion) in the July-September quarter. The impairment charge is purely an adjustment to the company's balance sheet, involving no cash, but it reflects that the mobile business is far less valuable and will generate lower profits than previously thought." Link to comment Share on other sites More sharing options...
lastAvenger Posted September 17, 2014 Report Share Posted September 17, 2014 That's almost a whole Mojang. lol. wonder how long they can keep up with such massive losses Sony's most profitable business is *wait for it* Financial services - Insurance. It brings in chunk of revenue for the parent company. As long as that does well (Which is) then there is nothing to worry. Their parent company is still in electronics though and I feel they need to get rid of quite a few businesses which are making losses for them. Maybe this year we will see them getting rid of Xperia. Link to comment Share on other sites More sharing options...
playstation Posted September 17, 2014 Report Share Posted September 17, 2014 Sony's most profitable business is *wait for it* Financial services - Insurance. It brings in chunk of revenue for the parent company. As long as that does well (Which is) then there is nothing to worry. Their parent company is still in electronics though and I feel they need to get rid of quite a few businesses which are making losses for them. Maybe this year we will see them getting rid of Xperia. They should do it now. World is much more competitive now in electronics and sadly none of Japanese company can claim they are on top anymore. I cant believe the best Electronic company in the world today is American...Apple.... Link to comment Share on other sites More sharing options...
goneforever Posted September 17, 2014 Author Report Share Posted September 17, 2014 The problem with Sony is that it became too bloated over the past 15 years. That and they've been slow to react to a changing market. And they are still pretty slow. Link to comment Share on other sites More sharing options...
godspeed4476 Posted September 23, 2014 Report Share Posted September 23, 2014 Their phones are shitty, they should phase it out Edit: I've heard that they are phasing out/ limiting their presence in notebook market as well Link to comment Share on other sites More sharing options...
Walker Posted September 23, 2014 Report Share Posted September 23, 2014 ^ yep. The notebook phase out part Link to comment Share on other sites More sharing options...
kemosabe Posted September 29, 2014 Report Share Posted September 29, 2014 They should keep TV division and fuse with PlayStation - they can do wonders with these. They need to get some western sales/marketing guys to do this, their product placement pathetic .They need to come down from the throne and start mingling with their consumers - in short just repeat whatever they did with PS4 with better product/service placement Link to comment Share on other sites More sharing options...
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