Sony reassesses its predictions for the year - quadruples its expected losses

Sony reassesses its predictions for the year - quadruples its expected losses
Sony has revised its results forecast for the fiscal year and it's not pretty. The company now predicts a $1.7 billion (¥180 billion) in losses, which is 4 times the amount it predicted in its last assessment, back in July.

The predicted losses come from the company's Mobile Communications segment's Mid-Range Plan (MRP). Apparently, while the tech world is impressed with Sony's flagship Z series, its low- and mid-class phones are generally lost in obscurity.

The MRP's initial goal was to achieve a sales growth, however, it seems that didn't work out as planned. Sony now says it has revised the plan, keeping lower expectations of cash flow in mind. The new MRP aims to reduce risk and volatility, which, according to Sony, means a reduction of its mid-range devices. As far as flagships go – these will receive marketing strategy tweaks in different geographical areas.

We do like the Z series – we even named the Xperia Z3 Compact “best smartphone of IFA 2014”, though we can see why the mid-ranged devices may be failing. Checking some recent low-to-mid-rangers, the Xperia E1, M2, and T3, we see some pretty attractive phones, with adequate performance and good battery life. However, they consistently fail to deliver in the display and sound departments and are just not competitively priced, when compared to devices of similar level.

source: Sony via Pocket-lint

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48 Comments

1. Antimio

Posts: 313; Member since: Nov 11, 2013

2 issues about low/mid-range Sony phones. 1. Way too overpriced and 2. Way less specs as other low/mid-range phones!. How can they match a Moto G, or any of those chinese phones (which are selling for less than $200) and even WP? I like Sony (pretty much, all of my electronics are Sony) but 1 or 2 flagships won't save the boat from sinking.

5. vishalaestro

Posts: 81; Member since: Dec 08, 2013

especially sony software has so many bugs when they get an update.my xperia l got 4.2.2 update and from the day i received the update the bug list was kept on increasing and even at the end of the bug fix update the bug wasn't solved at all then suddenly sony dropped the support for xperia l without fixing the bugs.still i can't make a phone call properly since the dialer simply freezes during the call .

7. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

Disappointing in prices and releases will make this fate.

38. nokia12

Posts: 610; Member since: Nov 19, 2013

they were awesome in 2013 with Xperia M,L,SP in terms of pricing this year they have gone haywire .. xperia c3,t3 all are 150-200$ more than moto g and still have same specs as moto G.. 1 gb ram and same snapdragon 400 in a 400-450$ smartphone lol..

33. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Hate Sony, as well as Panasonic Toshiba Fujitsu Sharp. Their products are always inferior

2. grilotell

Posts: 2; Member since: Jul 31, 2014

I'm not surprised. Sony does not upgrade the firmware of its low\mid-range phones. They want people to buy a new mobile phone every year. Phones from 2013 not receiving a single update, dying with android 4.3 or 4.2 version. It's your fault Sony. You dont care about your customers, all you want is money.

9. Antimio

Posts: 313; Member since: Nov 11, 2013

Agreed. All of those customers left in the shadows with their Xperia S, SP, T, L and stuff. Not fair at all! I won't appreciate it.

29. buccob

Posts: 2963; Member since: Jun 19, 2012

Well actually I knew what I was getting into when I got the Acro S... and the phone worked pretty good on ICS... but then we got JB and the support ended... however I am not dissatisfied. I like how my phone works with 4.1.2 and do not envy newer updates too much... Now after 2 years I will try to get the Z3 Compact... and expect to have it for another couple of years. I would like to see Sony succeed, but they do need to keep customers happy and I know that many are not.

3. Ketchapp

Posts: 23; Member since: Sep 04, 2014

Sony is doing pretty well in all other sectors (PCs TVs and Consoles), but they really need to step their game up in the Mobile market, all their Low/Mid end phones have lousy specs and are way too overpriced...

4. Commentator

Posts: 3722; Member since: Aug 16, 2011

If "doing pretty well" in the PC industry means selling their Vaio division and exiting the industry entirely, I guess you're correct...

10. Ketchapp

Posts: 23; Member since: Sep 04, 2014

I was referring to their Headphones Webcams and Speakers, which I see as PC accessories.

15. Commentator

Posts: 3722; Member since: Aug 16, 2011

Fair enough. I've had a few cheap headphones from Sony, they're pretty decent for the price.

6. hboy857

Posts: 367; Member since: Jun 03, 2013

Low and mid end category now belongs to Chinese manufacturer. If Sony keep their bi-annual flagship strategy i don't think they need their low- and mid-class phones anymore. They should only release flagship and upper mid category phones.

12. maherk

Posts: 6767; Member since: Feb 10, 2012

You're so wrong, that division still belongs to Samsung. Chinese phones are on the rise, but they are way far from taking the crown from Samsung. Lebanon is considered a 3rd world country, and the vast majority of people here go to either mid rangers or low end phones, and almost everywhere you go you will see that Samsung is still the number 1 choice for them. It was Nokia's kingdom 3-4 years ago, now anymore.

18. hboy857

Posts: 367; Member since: Jun 03, 2013

You're right. Low mid and end category still belongs to Samsung but i disagree with you about "they are way far from taking the crown from Samsung". My guess is they're gonna surpass Samsung within 2 years.

45. YourNickname

Posts: 127; Member since: Aug 14, 2014

Chinese mid and low phones will surpass samsung in 1 year or less

8. hunted

Posts: 403; Member since: Sep 21, 2011

reduce the prices and sony will see a growth as they expected. The C3 is just bit overprices for ex:

11. justsayit

Posts: 256; Member since: May 09, 2013

only fanboy buy sony,atleast what i see here, i have to admit,personally i dont like sony, but let be real,their phone is overpriced, always has better alternative that why they fail. just my opinion so take it easy and sorry for my broken english.

23. gaara6775

Posts: 738; Member since: May 20, 2014

You said it all. Its all true. Only fanboys buy it and their low end phones have lot of hardware issues .one of my friend changed his xperia L 3 times and still crib about lag & battery drain issue. And that device probably won't see any update too. I'm happy Sony sales have gone down. They will either learn to make good low/mod range phones or change their update cycle from 6months to 1 year.

31. XperiaFanZone

Posts: 2277; Member since: Sep 21, 2012

Not a "fanboy" here. But it makes sense to buy their high end phones. I agree that many "fanboys" (not all) would buy their low-end - mid rangers. The Xperia U was an exception back in 2012.

41. justsayit

Posts: 256; Member since: May 09, 2013

definitely make sense but, xperia flagship (z1,z2 etc) definitely cost as much as other popular phone,such as htc one,s5,iphone,but i barely see any xperia ads and, u is a consumer that not into tech same price,same spec, but one are more popular, what will u choose hope u see my point,they now no more a "big popular" company in mobile world. The only way to save them is reduce the price. do you know why other company like LG,xiaomi(i dont want to include this company but xiaomi is a good example) can earn but not losses ? because they make quality product but sell cheaper than other popular company. as a consumer,if a product has same spec or even better but cost cheaper than the popular ones.what u will choose? (am i off topic ...

43. XperiaFanZone

Posts: 2277; Member since: Sep 21, 2012

Where I'm at the Z is cheaper than the Z1, which is cheaper than the Z2. And I don't see many Xperia adverts either. The Xperia flagship phones cost the same/similar to other Android flagships. But I have the Nexus 5 because I was on a budget.

32. ngyixian96

Posts: 91; Member since: Feb 05, 2012

Agree. You are right. Only fanboy buy Sony. Why? Because only fanboy understand Sony. For those who hate Sony is because s/he don't understand Sony. Just like samsung users hate about Apple products.

42. justsayit

Posts: 256; Member since: May 09, 2013

why we need to "understand" the company/phone maker ?

46. ngyixian96

Posts: 91; Member since: Feb 05, 2012

Understanding, to prevent being a follower like samsung user. Buying a phone because others are buying it. "Because you follow the crowd, you do what they do."

48. justsayit

Posts: 256; Member since: May 09, 2013

u clearly dont understand what I'm saying

13. ryq24

Posts: 875; Member since: Oct 17, 2011

Chinese maker like xiaomi, huawei and lenovo are the king of mid range phone. And they have started to eat up samsung shares.

14. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

Sony, on life support. Back to the old days audio, TV, and maybe video consoles.

16. Omarc07

Posts: 574; Member since: Nov 12, 2012

maybe if they would release there dam phones on more carriers in the US..

20. XPERIA-KNIGHT unregistered

I was getting ready to say the exact same thing......it's sad....and as much as I love Sony this is the truth. How are they gonna succeed if they don't wanna compete in the U.S market? Aka, the largest mobile market!? I honestly don't get what theyre doing here. And I don't get why they haven't been playing in the U.S thus far.

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