Sony has reported its consolidated financial report for the second financial quarter ended September 30, 2014. Sales were at 1,901.5 billion yen ($17.445 billion), an increase of 7.2% compared to the same quarter of previous fiscal year but it posted an operating loss of 85.6 billion yen ($785 million), compared to a profit of 13.9 billion yen in the same quarter last year.
The company attributed the growth in sales to G&NS segment sales, reflecting the contribution of the PlayStation 4, a significant increase in Devices segment sales, and favourable foreign exchange rates. It attributed the significant deterioration to 176 billion yen impairment of goodwill recorded in MC (Mobile Communication) segment.
In the Mobile Communications segment, while the revenue increased 1.2% YoY to 308.4 billion yen, it was partially offset by decrease in sales mainly in Japan. This isn’t looking good for Sony as it’s losing in the market where it typically performs strongly.
Sony shipped around 9.9 million smartphone units in Q2 2014, down from 10 million units it shipped in Q2 2013, and up from 9.4 million units sold in the previous quarter. The company has also cut its full year forecast by 5% from 43 million units to 41 million units. It had already cut the forecast in summer from 50 million units.
Overall, the situation doesn’t look favourable for Sony in the smartphone segment.
Apurva is a tech enthusiast who loves her gadgets and talks about digital media usage. She is currently developing news.thedigest.co and works for an IT company.