Sony forecasts 6.5 million smartphone sales for a full year - is this rock bottom?
by Adrian Diaconescu / Feb 01, 2019, 7:18 AM
While overall sales and operating revenue were down for Sony’s third quarter of the 2018 fiscal year compared to the October - December 2017 timeframe, operating income (aka profit) surged from 350.8 to 377 billion yen ($3.46 billion) year-on-year.
The biggest money earners were the music, gaming, and home entertainment departments of the multinational conglomerate corporation, while the mobile communications (MC) division was the only one that generated less than it spent during the holiday season.
Quarterly smartphone sales declined a heartbreaking 37 percent or so compared to 2017’s fourth calendar quarter, from 217.5 to 137.2 billion yen ($1.2 billion), yielding a substantial loss of 15.5 billion yen ($142 million) after generating 15.8 billion yen in profit the year before.
Sony’s handset unit sales apparently took a dive in regions like Japan (ouch), Europe, and Latin America, although the company seems to suggest things could have been even worse if it wasn’t for recent “reductions in operating costs.”
Looking ahead, the company really doesn’t have many reasons for optimism, expecting full-year smartphone shipments at a lower level than previously forecasted. We’re talking a measly 6.5 million units between April 2018 and March 2019, down from an October projection of 7 million and a fiscal year 2017 total of 13.5 million.
Exactly how bad is that? Let’s just say LG, the world’s seventh-biggest smartphone vendor right now, managed to ship 9.5 million units in Q4 2018 alone. And that’s hardly a success story in today's mobile industry.
Posts: 545; Member since: Feb 23, 2012
posted on Feb 01, 2019, 7:36 AM 0
Posts: 918; Member since: Aug 03, 2018
Sony dropped their presence almost every where in Canada. You can't even find a place that sells them. The only place that carries Sony smartphones in Canada is Bell, and Virgin. But even then they only carry a couple. If you want the top of the line Sony, you can't get it in Canada. No presence, no sale. It's that easy. Sony needs to try putting in a pop up shop in a mall or two, at least.
posted on Feb 01, 2019, 8:14 PM 2
Posts: 901; Member since: Aug 01, 2016
Recent sony phones are liked only by the die-hard sony fans. Not one sony phone impressed me since z3 compact from 2014.
posted on Feb 01, 2019, 7:40 AM 7
Posts: 1315; Member since: Jun 20, 2012
Actually Sony phones are great for Android die-hard fans, because they are the best with nearly stock Android. Pixel phones are hardly available everywhere and they have their fair share of bugs and defects. The other major stock Android manufacturer is Nokia which is not as good as Sony (I mean blueish screens, fewer audio enhancements, build quality). Considering sales charts the issue here is that most people don't give a damn about clean Android. But I don't think that Sony phones are only for die-hard Sony fans. They are pretty accomplished phones.
posted on Feb 01, 2019, 7:56 AM 2
Posts: 62; Member since: Mar 02, 2012
Sony phones cost too much and are too tall, thick, and heavy. Not a huge surprise they aren't selling.
posted on Feb 01, 2019, 7:52 AM 10
Posts: 1315; Member since: Jun 20, 2012
Sony flagship phones in my region are second cheapest after OnePlus and way cheaper than Samsung and Huawei. Tall, thick and heavy is very relative, because Nokias and older iPhones are equally bezelicious but people don't seem to be so bothered. There are many factors and Sony is better in some things and worse in some others. I think their biggest problem is their inability to follow latest trends because of not being able to allocate more funds to development.
posted on Feb 01, 2019, 8:19 AM 3
Posts: 225; Member since: Nov 10, 2015
Yeah Sony going the way of dodo.. Even i don't contemplate to buy Sony for my next device. The way to play now is to be completely open, no restriction in how a device performs. The problem now is, Sony camera is half assed and locked to its function. when Google Camera is getting ported, nobody wants Sony anymore. But let's hope XZ4 can turn the situation.
posted on Feb 01, 2019, 7:55 AM 2
Posts: 164; Member since: Nov 08, 2016
I hate to say it, but to stand out they need to come up with a gimmick or a fresh and unusual and innovative design. They need to be noticed. Most folks just don't even know they exist in the smartphone game.
posted on Feb 01, 2019, 8:20 AM 1
Posts: 56; Member since: Sep 19, 2018
Sony need to kill the Xperia brand. Their biggest hardware brand is PlayStation. They need to go all out and create a gaming smartphone device (foldable) and call it simply PlayStation Phone. I know they kind of dabbled with the PlayStation Android store a while ago, but if they made a smartphone that had proper controls (pop-out) and a great Bravia foldable screen - along with WalkmanTM branded front speakers then I could see that selling. Certainly would sell more than 6.5M. They could offer PlayStation exclusive games on it too and maybe even offer a subscription service for running older emulated games. It could also replace the Vita which they killed off this year. Come on Sony, what are you doing?
posted on Feb 01, 2019, 8:31 AM 2
Posts: 3098; Member since: Jan 23, 2014
They already tried that, it was called the Xperia Play from about 2011 or so.
posted on Feb 01, 2019, 2:14 PM 1
Posts: 33; Member since: Jan 16, 2017
If they redid that and made their own app store with Psp Vita level games and high quality vr games they would surely see a big surge in sells. Gamers in general spend a lot on games. And the controller should be a separate attachment
posted on Feb 04, 2019, 12:43 AM 0
Posts: 447; Member since: May 12, 2014
Anybody thinking this is going to push Sony out of the market doesn't understand Sony. Their CEO explicitly said he doesn't care and they're staying in phones no matter how low their sales go, just to keep a hand in there so they've got a shot next time there's a systemic change.
posted on Feb 01, 2019, 9:47 AM 0
Posts: 363; Member since: Jul 04, 2015
I didn't know they even sold phones any more. All I've seen for years is a nice lineup of bezels with smartphones baked in.
posted on Feb 01, 2019, 9:53 AM 2
Posts: 1315; Member since: Jun 20, 2012
Tell that to the millions that still buy iPhones 8. I don't see them complaining much about bezels. I think my XZ3 has a lot less bezel than an iPhone 8 as well as any Nokia and Pixel. It's all a matter of lack of brand loyalty, nothing more. Otherwise there isn't much wrong with Sony phones. They are still your best alternative to Pixel line if you care about clean Android.
posted on Feb 01, 2019, 10:17 AM 1
Posts: 1195; Member since: Sep 04, 2015
I love the design of the XZ4, I'm just worried it'll be too much bezel for a 2019 phone to really be successful. I'm honestly more interested in a minimal bezel, no notch phone and this just isn't it.
posted on Feb 01, 2019, 10:22 AM 1
Posts: 33; Member since: Mar 10, 2014
Sad. I like Sony`s phones and design (however I never had a Sony phone). It seems that Sony is going the same way as HTC, MOTOROLA, and other "old brands", and simply can not withstand the price pressure from China`s "cheper but good" phones from one side, and the advert and salespower of Apple, Sammy from another. I predict that HTC, SONY, will be followed by LG, just losing the market shares and losing the money, until will be sold or something... Also the fate of Blackberry and NOKIA is still unclear... The saddest part of this is, that the buyers are left with fewer choices. Such producers as SONY offered us more choice on brand with quality and features.
posted on Feb 04, 2019, 7:58 AM 0
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