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Sony Corp revises projections for current year, expected losses increase fourfold
By Chris Cooke | Published on Wednesday 17 September 2014
Sony Corp has done some maths this week and worked out that the group is likely to make a loss of just over $2 billion this financial year, rather than it’s previous estimate of just under $0.5 billion. Which is quite a big difference, really, isn’t it? Even before you convert the figures into yen.
Sony, of course, has been struggling for years now, a temporary uplift in 2012/3 proving shortlived. It’s the consumer electronics side of the business causing the problems rather than the movie studios and music companies, with doom and gloom in the firm’s mobile division behind the revised loss predictions announced today. It’s because all you kids keep purchasing super-cool Apple and Samsung smartphones, rather than buying a cassette walkman from the 80s and just pretending to check your email on it. Which would probably be as productive.
Sony Corp CEO Kazuo Hirai has already been offloading less lucrative units and expensive property assets in a bid to turn the company’s fortunes around. Remains to be seen if talk of selling a slice of the conglom’s US-headquartered entertainment division slips back onto the agenda given continued challenges at the company.
Confirming the issues in their mobile phone business, Sony top guard said today that its latest revival plan had already been “modified to address the significant change in the market and competitive environment of the mobile business”.
