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Sony lowers smartphone outlook on weak emerging market sales
2014-07-31 10:06:00| Telecompaper Headlines
(Telecompaper) Sony reported higher revenues and a strong improvement in profit in the fiscal first quarter to June, driven by sales of its new Playstation. Revenues were up 5.8 percent year-on-year to JPY 1.81 trillion, helped by the launch of the Playstation 4 late last year as well as stronger film proceeds and currency effects. This offset the exit of the PC business and lower smartphone sales. Despite an increase in restructuring costs for the PC shutdown and an impairment charge on its LCD TV business, Sony's operating profit nearly doubled year-on-year to JPY 69.8 billion, thanks to a return to profit in the gaming business. Net profit jumped to JPY 26.8 billion from JPY 3.1 billion a year ago. The Mobile Communications division recorded sales up 10.1 percent to JPY 314.3 billon, or 2 percent higher excluding currency effects. Smartphone revenues were higher due to the forex effect, but unit sales decline to 9.4 million from 9.6 million a year earlier. Sony lowered its outlook for full-year smartphone sales due to weakness in the mid-range market, saying growth in emerging markets was not as strong as expected. It now expects to sell only 43 million smartphones this year, versus a forecast of 50 million in May. In light of the market developments, the company started a review of its mid-range plan for the mobile business. Despite the downgrade in the mobile outlook, Sony maintained its full-year forecast, thanks to stronger-than-expected results from gaming and image sensors.
Tags: sales
market
sony
weak
Category:Telecommunications
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