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Sony downgrades mobile growth expectations
2014-09-17 10:14:00| Telecompaper Headlines
(Telecompaper) Sony announced it will take an impairment charge of JPY 180 billion in its fiscal second quarter to write down the value of its mobile phone business. The company said a review of its medium-term plans for the mobile business found reduced growth prospects than its previous expectations. Sony flagged the review already in its last quarterly report and the impairment charge results in a downgrade in its full-year earnings outlook. The company now expects to report an operating loss of JPY 40 billion for the year to March 2015, versus a previous estimate of a profit of JPY 130 billion and a reported result last year of JPY 23.7 billion. With the annual net loss now estimated at JPY 230 billion, Sony said it will not pay an interim or final dividend for the year. For the mobile business, the company plans to focus more on the premium segment and said it will reduce the number of mid-range models it offers. It will also revise its strategy in certain geographic markets, Sony said, without providing further details. The new strategy reflects "the significant change in the market and competitive environment of the mobile business," Sony said.
Tags: mobile
sony
growth
expectations
Category:Telecommunications
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