Grim outlook: Sony's mobile division continues to bleed red ink, 7.1% slip in profits expected by 2016

Grim outlook: Sony's mobile division continues to bleed red ink, 7.1% slip in profits expected by 2016
Sony just released its financial report for the quarter that ended a month ago, on March 31. According to the report, Sony is doing quite well as a whole, being able to bring home a operating profits of $571 million for the accountable period, on top of a total revenue of $68.5 billion. These are, in fact, the financial results for the whole company, but what's the current state of Sony's mobile division, the one that interests us the most?

Well, Sony just revealed that it has scored an 11% increase in terms of device sales in comparison with the same period a year ago. The cited reasons for this beneficial increases in sales' figures are the improved device portfolio across all tiers, the emphasizing on high-end devices, as well as the beneficial effect of "foreign exchange rates".

Sony expects to score sales and operating revenue of 1.3 trillion yen ($11 billion) for the remainder of 2015 and the first three months of 2016, which will be 7.1% less in comparison with the company's 2014 results. On the bright side, it won't lose as much money as it did in 2014, too - a $328-million (39-billion yen) loss for the fiscal year that will end on March 31, 2016, is expected by the manufacturer.

 Recently, it was rumored that Sony might consider selling its smartphone division due to the losses that it generates and its shaken market positions. Fortunately for all fans of Sony's mobile devices, these rumors were subsequently denied by the company

Hopefully, another unprofitable financial year won't force the company to rethink its presence on the smartphone market. Judging from the giant's history, selling an unprofitable division is always an option - remember Vaio?


source: Sony

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35 Comments

1. neela_akaash

Posts: 1239; Member since: Aug 05, 2014

Just as expected... C'mon SONY wake up... or you will be out of the game.

15. KENTOZ

Posts: 86; Member since: Apr 03, 2015

Yup, Sony mobile division will remains that way Sony fanboys can dreams what ever they pleased as high as "Galaxy"

18. Feanor

Posts: 1389; Member since: Jun 20, 2012

Good, keep on trying to listen to your music in the subway with your Galaxy, while I'm enjoying it thanks to the active noise cancellation of my Z2. Meaning; Galaxy S6 is great phone, but it doesn't have everything. When it finally comes with stereo speakers (much louder after Lollipop update for the Z2), waterproofing, active noise cancellation and clean UI, then you can talk. ...and stop trolling all Sony articles, it's boring.

27. AnTuTu

Posts: 1620; Member since: Oct 14, 2012

lol you made me laugh with your comment.

29. Feanor

Posts: 1389; Member since: Jun 20, 2012

Laugh as much as you want, but what should I do with a super powerful smartphone, if it doesn't have what I use in my daily life? What should I use the power of the S6 or its unnecessary detailed screen, if I cannot enjoy my music during my daily commute or if I have to hope that its battery won't die before the end of the day? Of course in a tech website people will favour specs more than performance in actual usage patterns, but not I.

33. Tricell1991

Posts: 75; Member since: Mar 25, 2015

@KENTOZ Hello troll how are you ? Do you want some fish ??

2. seven7dust unregistered

They should probably undercut and offer more value like 64 GB phone for same price , competition is too intense to depend only on flagships. Also 20mp camera without OIS is a failed experiment go back to lower MP.

3. karamelakimo

Posts: 109; Member since: May 26, 2014

Hope the best for Sony , I wish if they can impress us with Z5

4. Kruze

Posts: 1285; Member since: Dec 30, 2014

Consumers want new design, give them new design. Consumers want better camera and image processing engine, give them better camera and image processing engine. Consumers want to know more about your devices, let them know more about your devices by advertising more. I know it costs money, but it's for the best, so spending some wouldn't hurt. Don't tell me they still don't know why Samsung has been very successful, it's all about the marketing, it's all about innovation, it's all about the wow. Sony can acheive that, it's just that they want to play safe. Come on, I thought you said that youre focusing on wow and kando? Where's the wow and kando? Stop being a pussycat, Sony. The mobile industry is getting tough. Wake up and smell the coffee! Don't play safe, play fierce. Hope the Z5 will finally have the wow.

6. maherk

Posts: 6965; Member since: Feb 10, 2012

Don't worry, the Z5 will deliver. And as you said, marketing is a big factor for a phone to succeed, the Z3's commercials started hitting our media outlets less than 3 months ago when the device has been released for almost 7 months now.

10. Finalflash

Posts: 4063; Member since: Jul 23, 2013

I have my hopes up for an Xperia Nexus phone this year. The announcement for the Z5 should have already been done if it was their regular release style. Yet they haven't released anything yet and we are only a month away from Google I/O with no idea of what will be the big announcement from Google this year. I think this year Google's focus will be on hardware and catching up to Lollipop. The best way to do it would be to release a range of devices in the Nexus line covering a compact phone, regular phone, phablet phone, smart TV, smartwatch, etc. For that purpose, Samsung, LG and Sony are the only ones really capable of such a feat and Samsung/LG already released their flagships. Plus Sony hasn't done a Nexus device so far and is one of the earliest Android OEMs. It may all be wishful thinking, but it seems more possible than ever before.

11. Kruze

Posts: 1285; Member since: Dec 30, 2014

Sorry for bursting your bubble, but the next Nexus smartphone will be made by Huawei. Google already announced their partnership with Huawei for the next Nexus device last year. A Sony Nexus would be awesome, but Google chose the Chinese tech giant to make the next Nexus device. So, yeah.

13. Kruze

Posts: 1285; Member since: Dec 30, 2014

The way they're doing for marketing is still pretty weak if you ask me, at least in my country. I've only seen one billboard of the Z3 in the middle of big city and they did advertise the Z3 on TV but after few months they stopped advertising it on TV.

17. Settings

Posts: 2943; Member since: Jul 02, 2014

Borrow some designers from the Playstation department. The Morpheus looks good too.

9. Tekkasonic

Posts: 11; Member since: Jul 31, 2012

I think the issue is that the carriers (at least in america) are pushing Samsung, HTC, Nokia because thats what they know... sony is still pretty new to the american market.. and because sales people don't take the time to push the sony either from lack of knowledge or trust, sony gets left out of the sales pitch... Ive had z1, z2, and z3 from tmobile and ive loved the phone, and I came from sprint and an HTC one(1st gen) to get the sony... sprint, and att should really think of picking up some sony's... I would switch back to sprint IF they had sony mobile...

12. BobbyDigital

Posts: 2125; Member since: May 29, 2014

They don't push Nokia in America. They never have.

5. Wiencon

Posts: 2278; Member since: Aug 06, 2014

Sorry to say that but it's only Sony's fault, from Z2 people wanted new design, Z, ZL, Z1, Z1c, Z2, Z3, Z3s and now Z4 (there was Z1s also if I remember correctly) all have same friggin design. Companies have to listen to consumers, look at LG, before Optimus G/N4 they made pretty average phones but with G2 they included what people want and now they are among most popular OEMs. Nobody wanted 6 months cycle, yet Sony's doing it for 3 years now, people want new UI, no, same UI since Arc days. Sony seems to copy HTC which seems to copy Apple by doing everything just like CEO wants it, not caring about consumers needs. Apple can do this, Sony can't, or it will be their last year on mobile market.

7. maherk

Posts: 6965; Member since: Feb 10, 2012

There is no Z3s, and the Z1s was the T-Mobile version of the Z1(same model different naming).

14. Feanor

Posts: 1389; Member since: Jun 20, 2012

You can argue about hardware design but I am not sure why people think that Sony has problem with UI design. Their Lollipop skin is very light, nearly identical to stock Android and the one that adheres most closely to Material Design. All Sony separate apps like the phonebook, or Album, Video, even Track ID and Sketch have turned into Material Design apps. I read recently in Phone Arena that Sony doesn't want to get rid of skeumorphic design any time soon, but it's really not true. When I see the interface of my Z2 running Lollipop, I see Material Design through and through (ok, maybe apart from the keyboard). But I think if someone says, the they don't like Sony UI, it's like saying they don't like stock Android. It's definitely more stock Android and Material Design than Touchwiz, Sense or Optimus UX.

8. hunted

Posts: 403; Member since: Sep 21, 2011

This statement is not necessary. Recently, it was rumored that Sony might consider selling its smartphone division due to the losses that it generates and its shaken market positions. Fortunately for all fans of Sony's mobile devices, these rumors were subsequently denied by the company. Hopefully, another unprofitable financial year won't force the company to rethink its presence on the smartphone market. Judging from the giant's history, selling an unprofitable division is always an option - remember Vaio? Yesterday you mentioned only about Samsung profits for the first quarter even when they reported a loss and stop working like for a brand you like.

16. Djz89

Posts: 447; Member since: Aug 25, 2014

The magic word is marketing, sony. Marketing. Good to profit in total

23. Taters

Posts: 6474; Member since: Jan 28, 2013

Sony's marketing department is amazing. They probably got the most impulse buys from me out of any technology company.

19. CreeDiddy

Posts: 2255; Member since: Nov 04, 2011

This is a result of Android Marketshare saturation. There are so many Android vendors possible that can long term growth. The only names I see are Xiaomi and Samsung.

20. AlikMalix unregistered

Time to copy the iPhone. Look at Samsung. It was slipping into the abyss and the s6 came out - with aluminum body, built in battery, built in memory (with options) finally put the headphone jack in the comfortable side, Samsung pay, Touch ID type fingerprint sensor, and enough juice to keep up with 64bit processor in iPhone - and voila - people like it all of a sudden - the iPhone "sucks" but the Samsung that's built like iPhone does not, apparently. Don't hate, but that's the way it seems. Samsung gained ground after copying the original iPhone with galaxy ace. Then when it tried something on its own it started to fail - now it's the same thing again.

24. Taters

Posts: 6474; Member since: Jan 28, 2013

The iphone sucks for a lot of reasons but hardware design isn't one of them. The GS6 is pretty much a culmination of the best the smartphone industry has to offer. It just so happens that people are suckers for Apple stuff so when Samsung does a consumer survey of what they want to see in their next flagship, some Apple stuff gets thrown out there. That's just the nature of the beast.

25. AppleCultist

Posts: 335; Member since: Feb 18, 2015

What the hell are you talking about? Samsung started to dip because they played it safe with the S5 and barely changed anything, so people saw no reason to upgrade. It has nothing to do with "doing their own thing". The S6 looks exactly like the S5 in the front and the only place it looks like the iPhone 6 is on the bottom, so cut your horsecrap about copying. Almost all the crap that you mentioned were on other devices before the iPhone like the Motorola Atrix for fingerprint sensor and/or are natural progression like 64-bit CPUs. People aren't buying the S6 because it's like the iPhone. They're buying it because it's the best phone out there, with the S6 Edge being the most unique smartphone currently.

28. AlikMalix unregistered

Would you trade samsungs new (iPhone type) fingerprint sensor for moto atrix version? I don't think so - that thing did not work. Saying 64bit is natural progression is why some androids are trying it now - it's Not copying Apple, but when Apple made bigger screens - it's not natural progression, right? I knew I was gonna get replies from you android nerds. What I don't understand is why are you so blind (or acting like). Everything android tries to accomplish or finally accomplished was on iPhone years ago - smooth UI, consistent UI, natural UI, unibody design with built in features, 64 bit, failproof fingerprint tech, cloud integration. Watch these android OEMs retreat from excessive ppi screens as they serve no purpose other than making amoled screens look as sharp as ips screen on iPhones. (Amoled screens don't look as sharp as ips screens at same ppi count - Google it). Basically in order to build a phone everyone wants - you gotta ask Apple. Hater comments below, the rest: enjoy your android.

30. AppleCultist

Posts: 335; Member since: Feb 18, 2015

So according to you, fingerprint sensor accuracy is an Apple invention. Newsflash, you tool, you can't hold rights to a number. I have never said Apple making bigger screens isn't a natural progression. Maybe you should stop masturbating to your iPhones and pay attention to what I'm saying, The reason why Android phones are using 64-bit is because all the Android versions at 5.0.2 or above now require 64-bit compatibility due to new encryption software. It has nothing to do with copying Apple. Yes, maybe all those things that you're stating were on an iPhone years ago, but Android has them now and does it better than the iPhone can. Android is more stable than iOS (Apps crash far less than Android than on iOS). iOS is also laggy and janky. My iPad 3 lags like crap with iOS 8 because Apple sucks at engineering. Stop with your horsecrap. AMOLEDs have a sub-pixel that requires a higher ppi than IPS to ensure you can't see pixelation. For IPS, that number is 300 and for AMOLEDs, that number is 350. However, after that ppi count, you can't see any pixelation on either the IPS or AMOLEDs, so that argument of sharpness is bulls**t. In fact, AMOLEDs can continue raising resolution and increasing sharpness while IPS is stuck at lower resolutions because higher res displays would suck out power. I know what you're going to say. "BUT WE DON'T NEED THAT HIGH A RESOLUTION!!! I CAN'T TELL THE DIFFERENCE!" Shut the f**k up. 300 ppi is only at the point where you don't see pixelation, but it is not the point where you can't notice differences in sharpness. Most people (90% +) can tell the difference between 300 ppi and 500 ppi and 1000 ppi. Not just that, AMOLEDs have better quality than IPS displays in color accuracy, color gamut, saturation levels, and everything else as mentioned by DisplayMate. So you can go enjoy your washed-out, low-quality screens from Apple. QQ more.

31. AppleCultist

Posts: 335; Member since: Feb 18, 2015

Oh yeah, one more thing. Apple is leaving IPS behind because IPS is a dead-end. Apple is going back to Samsung for AMOLED for future iPhones. Apple copying Samsung and Android once again. Can't Apple ever get a new idea by themselves? Mobile payment, LTE, NFC, bigger screens, OLED, notification bars, and more. Apple has to look to Samsung for 'inspiration' because Apple is a copy cat and a technology thief. Apple still hasn't paid Samsung for the LTE patent royalties which Apple was found guilty of infringing.

34. AlikMalix unregistered

All I read was, shut the f**k up, tool, masturbating... What the hell is your problem. All the crap you say is based on hate toward me and devices I choose. There's a world out there - try it. I really like my iOS devices - I'm don't see the difference in pixels beyond retina, and most people I asked don't see it either unless you put them side by side - what's the damn point. Even on amoled higher resolutions due suck more battery and resources - so YOU get your facts straight. f**ken dork.

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