Sony reports revenue dip following major smartphone sales decline


Sony's earnings report for its 2015 fiscal year shows a revenue dip of 1.3% (down to $71.7 billion), offest by net and operating profit growth driven by its successful games and home entertainment divisions. The revenue drop can be largely attributed to its mobile and devices units underperforming. Sony's mobile business, in particular, is doing especially bad. It registered an operating loss of $544 million, 57.4% worse than the company's projections. Clearly, the "strategic decision not to pursue scale in order to improve profitability" hasn't amounted to much, if anything. Major reconsideration is in order if the company wants to make its long-struggling mobile business turn a profit, and with the smartphone market now saturated and unusually price-aggressive, the situation appears dire.

Sony's devices unit, known for banking heavily on imaging sensor sales, is having a hard time too. It reported a $253 million operating loss, with a $528 million impairment charge and diminished demand partly to blame. This is the first time in a long while in which Sony's camera sensors haven't been strongly sought after. Apple and Samsung, the mobile industry's largest players, have been gobbling up Sony imaging chips for a long while. Last year, the division practically struggled to keep up with demand and invested in new manufacturing facilities. Thus, speculation that Sony has lost a major customer for its imaging sensors is in order.

As if that's not bad as it is, Sony also had to close its factory in Kumamoto and part of its factory in Nagasaki due to damage caused by the recent earthquakes in southern Japan. Both facilities deal with imaging sensor production. Sony still doesn't know when their activities will resume, although the company estimates it has enough inventory to cover demand in the months ahead. Because of this, the company postponed its forecast for the 2016 fiscal year until May. It should make Sony's plans for the near future clearer – something that we're rather curious about, considering the kind of crisis-time thinking Sony needs to show.

source: Sony (.PDF) via The Verge

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36 Comments

1. TheLoyalist

Posts: 26; Member since: Feb 11, 2013

Just to clarify: "Net profit grew 666.7 percent to ¥304.5 billion ($2.7 billion) and operating profit was up 329 percent to ¥294.2 billion ($2.6 billion)" For Sony as a whole

2. ibend

Posts: 6747; Member since: Sep 30, 2014

source? edit--- already fount it, and its all thanks to playstation nextleveltech.news/2016/04/27/sony-earnings-show-p​laystation-performing-well-as-xperia-drags/

5. donrox

Posts: 201; Member since: Jul 18, 2014

3. AhmadAlsayegh

Posts: 326; Member since: Jul 18, 2011

yeah, but mobile division is doing bad. I think Sony should set a more affordable pricing strategy for its devices, they are even more expensive than Apple where I live.

16. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Sony smartphone don't impress me enough. The screen to phone ratio is average, price is on the high side. For me to pay their price a beautiful slim borderless phone is a must. Samsung S7 edge is more impression.

32. BLikens1619

Posts: 67; Member since: Apr 12, 2008

I can get an unlocked Sony z series device from anywhere from $400-$650 where in the same market, an unlocked iPhone is anywhere from $700-$1000.

37. Larry_ThaGr81

Posts: 592; Member since: May 26, 2011

That's their biggest problem. They aren't big enough in the mobile industry to have such a high price point, they must think they are Apple and I'm a Samsung user myself.

4. ibend

Posts: 6747; Member since: Sep 30, 2014

HTC, LG, sony, bb, nokia should quit mobile market.. xiaomi, meizu, LeEco, and others is ready to replace them

7. Gatorsrule52

Posts: 103; Member since: Mar 18, 2013

Ew no. I don't trust those cheap brands. They're not going to replace anything for me :)

14. EcoCare

Posts: 444; Member since: Jul 30, 2014

You mean affordable. My sister has a low-priced Xiaomi and it has been working very well until today. It even receives regular software updates. Not all Chinese brands suck you know.

38. oister85 unregistered

Lenovo is pretty good.

8. Gatorsrule52

Posts: 103; Member since: Mar 18, 2013

Ew no. I don't trust those cheap brands. They're not going to replace anything for me :)

9. JoshN

Posts: 202; Member since: Apr 01, 2015

Long Live NOKIA NOKIA SHALL PREVAIL ABOVE ALL :-) lol we need HTC & LG but what have sony brought new to the table... NOTHING and thats why theyre failing and as for BlackBerry if they put a Snapdragon 820 w 4gb RAM in a Priv ill buy it straight away cause i love that phone as it brings something NO ONE ELSE HAS... a Physical keyboard Samsung - Edge Display, S Pen HTC - BEASTLY audio out put LG - Clicky thingy for slidy battery thing Xiaomi - low prices Motorola - Front Facing Speakers Blackberry - Physical Keyboard Nokia - 3310 :-) Apple - THINNESS AND SH!T BATTERIES SONY - reused, reduced & recycled angular pointy 'omnibalance' design which looks good but feels like SH!T and is soooooo unpracticle and uncumfortable soo thats my opinoin but feel free to disagree or add things i forgot to put :-)

11. Jason2k13

Posts: 1462; Member since: Mar 28, 2013

Sony went downhill after the Z3, the new X series brings nothing new to the table.

36. HomerS

Posts: 419; Member since: Sep 19, 2014

Samsung has a physical keyboard case for their phones.

12. Guaire

Posts: 886; Member since: Oct 15, 2014

Nokia is already done. HTC, Sony, BB and Microsoft probably will be next casaulties unless they get smart and gonna adopt sensible pricing. Their fanboys usually doesn't like to hear that. Biggest problem with these Chinese brands is availability. They need to launch in more countries with more models with similarly charming prices.

23. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I came here to say that too.

30. TypicalGeek

Posts: 213; Member since: Feb 19, 2015

If those Chinese brands replace Finnish, Japanese, Korean and Taiwanese, I will buy Samsung or Apple. At least they make good quality products, and I only hate their software choice.

6. JoshN

Posts: 202; Member since: Apr 01, 2015

yeah but meanwhile at poor old sony mobile :-( i remember the good old days of the Z2 which was far better than competition at that point in time :-)

31. bm985

Posts: 33; Member since: Apr 21, 2016

Yeah that's was a true flagship, the rest of the phones after z2, are half done improvements.

10. Chuck007

Posts: 1410; Member since: Mar 02, 2014

They should seriously consider hiring a Samsung or Apple exec if they can afford it. Their mobile division have no direction whatsoever..

13. Loubielou

Posts: 603; Member since: Jul 11, 2012

The Critics made Samsung improve its phone Quality,Sony needs to change its premium phones to compete more with Samsung or Apple,nearly every Sony phone looks the same and the designs needs changing,Sony phones could offer much bigger screens but there home buttons prevent them from doing this why?can"t they change the home buttons to offer more screen viewing,Sony does well in there cameras and that seems the only area they really doing well

20. Awalker

Posts: 1977; Member since: Aug 15, 2013

I think they need a design overhaul but I don't think that'll help them much. I'm not sure what they can do at this point to improve their situation in the mobile industry.

21. rkoforever90

Posts: 443; Member since: Dec 03, 2011

I don't think design is the reason for Sony s poor sales Mostly it's due to poor marketing and high price even devices like z2 and z3 didn't do any good for the company

15. oozz009

Posts: 520; Member since: Jun 22, 2015

Damn, I allways wanted to see a Sony revival in the mobile space. If only they would fix their cameras (everything else is top quality on their phones already)! Keeping my eyes on you Xperia X, make a miracle happen ;) (Should it happen, I would gladly throw my iPhone in the recycling bin):D

19. dazed1

Posts: 800; Member since: Jul 28, 2015

Big bezels - check Subpar display - blown away from Meizu - 200$ phone Pathetic camera software - inferior camera to LG/Samsung Same design 4 years in a row No UFS 2.0 Z1/Z2/Z3/Z4 - same phone All in all, one great company led by pathetic managers, and mobile division CEO.

24. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Curious how Apple and Samsung can use Sony's camera sensors and do a better job with them. Sony is lazy. Just stop making phones already.

26. Guaire

Posts: 886; Member since: Oct 15, 2014

Despite popular belief I think at camera department Sony handsets suffers from hardware like lack of OIS and wider apertures, and at some cases smaller pixels.

27. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

Crappy comment from someone who hasn't owned a modern Sony flagship - check

22. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Sony, HTC, Moto and Microsoft. Please leave the smartphone market and let the boys who have a better idea what they are doing, just take it over. All we need is Samsung, LG and Apple. if newcomers like Xiaomi and Meizu can come and sell more than you in such a short time on the market vs a company that has an establish brand more than 2 decades old, then that means you suck. Do US carriers even sell Son;y phones? I don't think I've ever seen a Sony Xperia at the carrier store. The first time I saw one, was at a Sony store year ago. But Sony doesn't even have stores anymore.

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