Despite declining sales, Sony isn't losing money on its Xperia phones


Sony has just announced its Q3 2016 financial results. The company's "Mobile Communications Segment", which is the division that's responsible for the Xperia smartphone series, has still managed to post a small profit despite what seem to be ever-falling sales.

During the third calendar quarter, Sony has shipped 3.5 million Xperia smartphones. That's a slight improvement compared to the previous quarter (3.1 million) but a massive decline compared to Q3 2015 when the company shipped 6.7 million Xperia smartphones.

In terms of revenue, Sony Mobile brought in 168.8 billion Yen during Q3 2016, a 39% decline compared to the same quarter a year ago. As you see, raw unit shipments and revenue have not declined proportionately. According to Sony, this is mainly due to its focus on "high value-added models".

Although revenue and raw shipments both declined, Sony did not lose money on its Xperia smartphones in Q3 2016. While the 3.7 billion Yen (USD 35 million) in profit is not an impressive figure, it's a notable improvement compared to the same time period a year ago, when Sony Mobile lost 20.6 billion Yen (USD 196 million). Sony's official papers say that the return to profit was possible due to cust-cutting measures, the positive impact of foreign exchange rates, and a focus on models that make the company more money per unit. 



Looking forward, Sony has lowered its sales estimate for the 2016 financial year, which ends in March 2017. While the company was previously expecting to sell 19 million Xperia smartphones during the time period, that number has now been lowered to 17 million. The expected profits remain at 5 million Yen due to better-than-expected profit rates.

source: Sony via Xperia-Blog

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23 Comments

1. Obie-Wan

Posts: 113; Member since: May 24, 2012

The high price/unit makes this possible.

2. hansip87

Posts: 228; Member since: Nov 10, 2015

With PSVR getting profitable and Xperia getting slim profit now, i am optimist that Sony won't remove Xperia in near future, plus the Remote Play functionality kept locked to Xperia phone is one way to gather additional user to the platform. Keep Android barebone with additional premium (bloat but useful ala Xperia)ware and swift Nougat update will do them good.

3. rkoforever90

Posts: 473; Member since: Dec 03, 2011

rather than launching new overpriced phone i wish they just update the good ol` xperia z3 to new internals

21. XperiaG

Posts: 178; Member since: Jun 06, 2016

I agree... I love Z3 it is the best phone and best battery life I have ever had.

4. Xperia14

Posts: 1208; Member since: Sep 01, 2015

I'm glad to see. They did really well with the XZ, it even sold out here. But it has an awesome camera, very good build quality, finally a top notch screen and (despite only 3GB of RAM) it's one of the fastest Android devices with a very responsive and clean UI. I'm not getting one though unfortunately.

5. Tyrion_Lannister unregistered

With their absurd pricing, I would be surprised if they don't turn a profit. At this point, they are just milking the fanboys.

8. Xperia14

Posts: 1208; Member since: Sep 01, 2015

It's cheaper than the S7 edge here in the Netherlands. It was even way cheaper on contract the last time I checked, plus you got a €200 BT headphone as well. Not bad at all.

11. Tyrion_Lannister unregistered

It doesn't even compete with the S7, which is not that great of a phone. Here even the Xperia X costs more than the S7.

12. Settings

Posts: 2943; Member since: Jul 02, 2014

XZ and X are different. XZ is a straightforward competitor of S7 specwise.

14. Tyrion_Lannister unregistered

I know that. And positioning Xperia x at the same price as S7 is foolish at best.

23. Djz89

Posts: 447; Member since: Aug 25, 2014

agree, here it is cheaper than the s7, and the s7 is just a bit chaper than xz. TBH xperia is not that expensiv here, but we dont have much chineese brands either, ecept huwei and som zte, but zte is not very popular

10. Djz89

Posts: 447; Member since: Aug 25, 2014

TBH they are not that pricey here, exept when realese.

6. Troysyx

Posts: 181; Member since: Jul 30, 2012

This is great news! hopefully this means that Sony does not leave the mobile market. I haven't had a sony phone since the Z1 but I've always kept my eye out on their products. It always seems like they are just a feature or two away from making the best phone.

7. jellmoo

Posts: 2645; Member since: Oct 31, 2011

Charge a lot for very little and hope you somehow come out ahead. That's the Sony way.

9. Xperia14

Posts: 1208; Member since: Sep 01, 2015

'very little'? What makes this phone have less than others? I can't think of many other phones that are as fast, have the same camera quality and battery life. It even has IP68, dedicated camera button, hi-res audio etc. Here's a non-PA review:http://www.androidauthority.com/sony-xperia-xz-review-714081/

16. jellmoo

Posts: 2645; Member since: Oct 31, 2011

People should pay a premium for a device with less RAM, a meh camera, a lower res display that's not colour accurate, and features a disabled fingerprint scanner?

13. sumpil

Posts: 91; Member since: Feb 02, 2016

They probably didn't overproduce stock so that they sit in the warehouse waiting to be written off

15. aznhachi

Posts: 212; Member since: Apr 12, 2016

oh boy that Q4 14 Xperia Z3 series in memory

17. nokia12

Posts: 610; Member since: Nov 19, 2013

and that Q3 and Q4 2013 was the best time for sony midrangers Xperia M , Xperia L and Xperia XP all 3 bang for the buck phones unlike o

18. nokia12

Posts: 610; Member since: Nov 19, 2013

*unlike overpriced sony of today

19. johnh3

Posts: 147; Member since: Aug 23, 2012

I bought a Sony Xperia XZ for some time ago in Sweden. Was cheaper than the small base model of the iPhone 7 with 32 GB. So I would not say it was overpriced. And they also bundled some Sony bluetooth headset with it to.

20. Xperia14

Posts: 1208; Member since: Sep 01, 2015

How do you like it?

22. johnh3

Posts: 147; Member since: Aug 23, 2012

I like it a lot. Nice design, great to hold etc..

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