Sony raises its annual loss forecast 400 percent

Sony raises its annual loss forecast 400 percent
In another shocking announcement, Sony has raised the forecast for their expected annual loss by 400 percent to $2.14 billion.

For the fiscal year ended March 30th, 2015, the company expects to lose 230 billion yen, up from an already raised 50 billion yen forecast.



Sony cited poor sales in its smartphone business, due to major competition in the space.

"The new MRP (Mid-Range Plan) was modified to address the significant change in the market and competitive environment of the mobile business," Sony said in a statement. "Under the new MRP, the overarching strategy for the (mobile) segment has been revised to reduce risk and volatility, and to deliver more stable profits. This revision includes changing the strategy of the (mobile) segment in certain geographical areas, concentrating on its premium lineup, and reducing the number of models in its mid-range line up."

Sony has taken significant share in Western Europe, as high as 11 percent by some accounts, but the price reductions and marketing have taken their toll on profits. Sony also has no share in the U.S., at just 0.2 percent of the market dominated by Samsung, Apple and LG.

Written by: Andre Yoskowitz @ 18 Sep 2014 0:13
Tags
Sony Smartphones Earnings
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  • 14 comments
  • Ripper

    Sony has always been a relatively premium brand in its tech offerings (or at least that's where they tend to place themselves with their pricing, hardware usually reflecting) so I don't think that they should be trying to make offerings in the low-end mobile market anyway.

    The Z2 was quite an impressive phone, and both the Z3 and Z3 Compact are very good. If the Nexus 6 ever comes and its camera is typically lackluster, I may well buy a Z3 as my next phone.

    Edit: And if the Z3 launches on all carriers in the US, which it might (?), then I think they can expect a considerable (relative) market share boost.


    18.9.2014 07:17 #1

  • Mysttic

    I happened to get my Z1 just as the Z2 was about to come out. The reason I didn't wait is because I didn't see enough difference in technology from Z1 - Z2 to warrant the bump. Now that should say something about Sony's high end smart devices. The only thing that I regret off my phone is when I upgraded Android 4.4.4, my Z1 didn't like it and made the phone relatively buggy especially with the keyboard acting up on it's own. Still over looking minor issues aside, it does everything I need it too, and performs damn well on applications.

    Into the future I wish to upgrade to whatever the next Z? experience will be, especially if they don't implement PS4 control on the Z1. I just hope these profits losses, don't screw the Xperia line-up; as I been more impressed with this series than I have been Galaxy or Apple.

    18.9.2014 11:03 #2

  • ZippyDSM

    A shame they sold the VIO brand I was this close to getting a flip.

    Copyright infringement is nothing more than civil disobedience to a bad set of laws. Lets renegotiate them.

    ---
    Check out my crappy creations
    http://zippydsmlee.deviantart.com/

    18.9.2014 12:51 #3

  • hearme0

    They're simply getting drowned out by competition.

    Sony used to be the major solution for those with lower budget but wanted long lasting quality......they still are but so are so many others.

    This will only get worse for Sony going forward.

    18.9.2014 15:11 #4

  • Menion

    Oh well you know what this means everybody, Sony is going to stop selling consoles and only sell software like Sega! ;)

    19.9.2014 01:26 #5

  • Mysttic

    Quote: MenionMember
    Oh well you know what this means everybody, Sony is going to stop selling consoles and only sell software like Sega! ;)
    Below is Sony's current net worth across numerous networks, (and that's not even all of them, let alone all of them listed over a $1 billion in net worth). Over half of those listed below are valued @ billions. I don't see Sony going anywhere any time soon. They can afford a billion dollar loss or 2.

    SEGA's portfolio didn't even have a dent to Sony's. That's why they went software route.

    SONY FINANCIAL HOLDINGS INC. Minato-Ku, Tokyo, Japan $13358.43M
    Sony Mobile Communications AB Lund, Sweden $11456.35M
    SONY EUROPE LTD Weybridge, Surrey, England $6514.8M
    SONY CORPORATION OF AMERICA New York, NY, United States $3988.8M
    Sony Electronics Inc. San Diego, CA, United States $3477.1M
    Sony Pictures Television Inc. Culver City, CA, United States $28.7M
    Sony of Canada Ltd North York, ON, Canada $243.21M
    SONY EMCS CORPORATION Shinagawa-Ku, Tokyo, Japan $13793.65M
    SONY LIFE INSURANCE CO.,LTD. Minato-Ku, Tokyo, Japan $11643.08M
    Sony Mobile Communications International AB Austria $0.24M
    SONY SEMICONDUCTOR Kikuchi-Gun, Kumamoto, Japan $3458.05M
    SONY MOBILE COMMUNICATIONS INC. Minato-Ku, Tokyo, Japan $3087.06M
    SONY MARKETING (JAPAN) INC. Minato-Ku, Tokyo, Japan $2873.3M

    19.9.2014 09:50 #6

  • ZippyDSM

    Sony will never go software only it would take 2 or 3 bad consoles in a row for them to do it tho.

    Copyright infringement is nothing more than civil disobedience to a bad set of laws. Lets renegotiate them.

    ---
    Check out my crappy creations
    http://zippydsmlee.deviantart.com/

    19.9.2014 10:11 #7

  • ivymike

    Sony owns more than just software or cell phones. They are one of the "Big Four" record labels and a major force in the production of Hollywood movies.

    IMHO, Sony got what they deserved. Karma is a bitch to companies who choose to screw over the consumer.

    20.9.2014 00:36 #8

  • Menion

    Originally posted by Mysttic: Quote: MenionMember
    Oh well you know what this means everybody, Sony is going to stop selling consoles and only sell software like Sega! ;)
    Below is Sony's current net worth across numerous networks, (and that's not even all of them, let alone all of them listed over a $1 billion in net worth). Over half of those listed below are valued @ billions. I don't see Sony going anywhere any time soon. They can afford a billion dollar loss or 2.

    SEGA's portfolio didn't even have a dent to Sony's. That's why they went software route.

    SONY FINANCIAL HOLDINGS INC. Minato-Ku, Tokyo, Japan $13358.43M
    Sony Mobile Communications AB Lund, Sweden $11456.35M
    SONY EUROPE LTD Weybridge, Surrey, England $6514.8M
    SONY CORPORATION OF AMERICA New York, NY, United States $3988.8M
    Sony Electronics Inc. San Diego, CA, United States $3477.1M
    Sony Pictures Television Inc. Culver City, CA, United States $28.7M
    Sony of Canada Ltd North York, ON, Canada $243.21M
    SONY EMCS CORPORATION Shinagawa-Ku, Tokyo, Japan $13793.65M
    SONY LIFE INSURANCE CO.,LTD. Minato-Ku, Tokyo, Japan $11643.08M
    Sony Mobile Communications International AB Austria $0.24M
    SONY SEMICONDUCTOR Kikuchi-Gun, Kumamoto, Japan $3458.05M
    SONY MOBILE COMMUNICATIONS INC. Minato-Ku, Tokyo, Japan $3087.06M
    SONY MARKETING (JAPAN) INC. Minato-Ku, Tokyo, Japan $2873.3M
    Seriously? It was Satire! It's the same B.S. Heard from Sony Fanboys every-time there is some bad news for Nintendo, really didn't think I had to explain that one.. figured the fact Sony really wasn't a big Game developer to begin with kind of gave it away...

    20.9.2014 05:31 #9

  • DVDBack23

    Originally posted by Mysttic: Quote: MenionMember
    Oh well you know what this means everybody, Sony is going to stop selling consoles and only sell software like Sega! ;)
    Below is Sony's current net worth across numerous networks, (and that's not even all of them, let alone all of them listed over a $1 billion in net worth). Over half of those listed below are valued @ billions. I don't see Sony going anywhere any time soon. They can afford a billion dollar loss or 2.
    Sure, most corporations can afford to lose "a billion or 2" but shareholders don't take too kindly to companies that lose billions for the better part of a decade. The company has a current market value of $18 billion, down from $37 billion in 2011 and way down from $50 billion in 2007.

    20.9.2014 12:10 #10

  • ajsmsg78

    Bad battery life and huge bezels make the phones worse than a lot of other manufacturers out there. I would never consider a Sony smartphone until they decide to give it a complete overhaul. Shrink the bezels down like Samsung has done with all their phones and I think they would sell more.

    21.9.2014 02:47 #11

  • Ripper

    Originally posted by ajsmsg78: Bad battery life and huge bezels make the phones worse than a lot of other manufacturers out there. I would never consider a Sony smartphone until they decide to give it a complete overhaul. Shrink the bezels down like Samsung has done with all their phones and I think they would sell more.


    vs




    Huge bezels? Comparable, if not smaller on the Z3 line. The Z3/Z3C reportedly have top tier battery life on normal use, too.

    In conclusion, you are wrong to dismiss Sony's latest smartphones.


    21.9.2014 08:51 #12

  • adre02

    Originally posted by ivymike: Sony owns more than just software or cell phones. They are one of the "Big Four" record labels and a major force in the production of Hollywood movies.

    IMHO, Sony got what they deserved. Karma is a bitch to companies who choose to screw over the consumer.
    Lol. That was their forecast. Obviously it's called a forecast because well, it is not definite.

    This is superman

    21.9.2014 23:32 #13

  • Jemborg

    I've heard pretty good things about their phones.

    Its a lot easier being righteous than right.


    DSE VZ300-
    Zilog Z80 CPU, 32KB RAM (16K+16K cartridge), video processor 6847, 2KB video RAM, 16 colours (text mode), 5.25" FDD

    22.9.2014 02:21 #14

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