Sony sold just 1.6 million smartphones in Q3; losses to continue through 2020

Sony sold just 1.6 million smartphones in Q3; losses to continue through 2020
The Sony Xperia XZ3

Sony as a whole is doing extremely at the moment – the company is forecasting a record profit for Q4 2018 – but when it comes to its smartphone unit, things just appear to be getting worse.

For the three-month period ending September 30, Sony has announced that it shipped just 1.6 million smartphones. This represents a huge decline of 1.8 million units versus the same period last year and a further drop of 0.4 million when compared to the second quarter of 2018. In terms of revenue, these numbers translated into a total of $1 billion. Despite various cost-cutting measures, though, the company still reported a larger-than-expected loss of $265 million which is being attributed to a decline in sales across Europe, Latin America, and the Middle East.

Moving forward, Sony has once again revised its forecasts. Initially, for the financial year ending March 2019, the Japanese giant was expecting smartphone shipments of 10 million units. But after revising this to 9 million units back in July, the company has once again lowered the number to 7 million units. In addition to this, Sony’s mobile unit is now expected to record a loss of $841 million, significantly bigger than the previous expectation of $264 million.

Previously, the company hoped that its smartphone business would turn a profit by the end of 2019 or beginning of 2020 with the help of 5G, but Sony has now stated that it expects losses to continue until at least early 2020. Furthermore, it has announced that it will reduce the operating costs associated with the business by 50%.

Sony sold just 1.6 million smartphones in Q3; losses to continue through 2020

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19 Comments

1. TypicalGeek

Posts: 205; Member since: Feb 19, 2015

It will take people a few years to realize Sony modernizes its mobile design, adding unique touch to their devices. I know they price competitively, but flagship nowadays is $1K. They should undercut competitors in price for a few years so they can get more sales. Also put more money in marketing.

7. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

Sont phones have always sucked. The few nice things they have are not worth it. Seeing as their phones aren't even available in many countries, like the US; isnt helping them either. Their phones have always been terrible.

2. worldpeace

Posts: 3077; Member since: Apr 15, 2016

I'm still surprised they managed to sell that much with their current smartphone lineup.

3. Nimbus

Posts: 435; Member since: Apr 02, 2018

Poor Sony they charge high and other thing make no availability of their midrange products in india,china and other asia,european countries that why they get poor sales.Make your Xperia XA3 & XA3 PLUS available in india with cheap cost and good specs like SD710,670,675 next year just like how Huawei,Xiaomi,Nokia and Motorola do it with their midrange product portfolio with good price.XA2 and XA2 ultra & plus are not available even in india upto this month,year.Till 2020 if they don't do it they deserve to get poor sales on their midrange phones.There flagship phones are anyway price high to compete with Apple flagship and other android oems flagship so that not a concern but their midrange devices need to be available and price accordingly to its spec sheet how consumer market want it to be it like china and India.

4. iAndroid18

Posts: 38; Member since: Oct 23, 2018

Considering what Sony used to be to what it is now, this would hardly change anything. They need to find a fine balance between price, features to differentiate from stock android crowd and finally price. Just asking premium price, being Pixel alternative and being on par with rest with no marketing will only hurt them more. They made some wonderful devices and were pioneer of innovation. Now, I see them just the opposite.

5. jellmoo

Posts: 2526; Member since: Oct 31, 2011

They price their devices higher than what their brand perception allows, fail to market them adequately, struggle to find a use case that really attracts casual users, and ultimately have failed to follow modern design trends. Their devices aren't bad. Not at all. The XZ3 is really nice. But they just can't find a compelling reason for the average consumer to want one over the competition. For some reason, they have really failed to capitalize on their Playstation brand in correlation with their mobile devices. With gaming developing into a mobile thing all its own, the fact that Sony is letting it fly by is almost baffling.

6. libra89

Posts: 2155; Member since: Apr 15, 2016

Well said. I'm a fan of their Compact flagship series but they seem to be pausing on that sadly.

8. alligator

Posts: 93; Member since: Jan 09, 2016

If I want to get an Android flagship today I will probably think about Samsung, Huawei, OnePlus, eventually Pixel but Sony will appear on number 5 in my list. The same situation is with the LG phones. These two companies are not risking anything to make their phones recognizable. They should put something really innovative in their phones in order to change this trend.

10. D34ever

Posts: 201; Member since: Jul 14, 2018

Too damn expensive and zero brand recognition.

11. ryq24

Posts: 872; Member since: Oct 17, 2011

Sony phones are too expensive. They can't compete anymore especially with oneplus and Huawei selling cheaper phones but with better features. Sony has been left behind in the mobile phone devices and maybe it's time to close shop.

12. Alin03

Posts: 35; Member since: Mar 02, 2017

I think their marketing is terrible, that's why. People like famous youtubers that inspire lots of people get gift phones for OnePlus, Huawei, Xiaomi... but never Sony.

13. FlareKilla25

Posts: 13; Member since: Oct 18, 2018

On the bright side hopefully this means more deals on future sony phones if not outright lower prices than competing flagships

15. Akraw

Posts: 70; Member since: Apr 02, 2012

if they don't adapt as per the competition and price their device a bit lower than this story will continue next year also

16. Pcworld1976

Posts: 117; Member since: Sep 18, 2018

People prefer to buy xamfung, Apple and Chinese junk thanks to them I can get a premium xz4 for € 600 with PS4 or haha ​​gift headphones

17. markusinfinite

Posts: 72; Member since: Aug 05, 2016

I am using the XA1 Ultra and it is cheap and reliable. I love the design of Sony but their marketing is really.......

18. cheetah2k

Posts: 2146; Member since: Jan 16, 2011

Sony's becoming the new HTC.....

19. kamen

Posts: 103; Member since: Jul 18, 2011

Sells are abysmal due to handsets themselves, too: - Overpriced - No Optical image stabilization - No Audio jack - Outdated built-in apps - Design from 3 years ago Speaking by experiencing a few Zs myself.

* Some comments have been hidden, because they don't meet the discussions rules.

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