Japanese company Sony has unveiled the next financial report, which shows the profitability of the company at $ 280 million on revenue of 15.8 billion dollars. Although individual business segments continue to develop and bring the Sony is more money in the great smartphone market, the mobile unit continues to face challenges.
Why is the great smartphone market Sony do not perceive?
Revenue from sales of smartphones reached 2.3 billion dollars, and loss – 172 million dollars in the great smartphone market, which is not billions, as it was previous. As reported by Sony in its report, the mobile unit has demonstrated “a significant decline in sales of smartphones in pieces as a result of a strategic decision not to pursue sales in an attempt to improve profitability.” The actual decline was 15.2% in yen and 17% – in dollars compared to the same period last year.
The company links the unsuccessful results are not only active in the market, and exchange rate fluctuations, which affected the increase in the costs of restructuring the business in the great smartphone market. But the new strategy, according to Sony, is already bearing fruit in the form of increased margins due to focus on higher-end devices, as well as reducing the cost of marketing and development.
The gaming area is still growing – revenues from the PlayStation 4 was $ 3 billion (16.5% growth in comparison with the same quarter in 2014) with a profit of 199 million (10% increase). Business production of components, primarily for the matrix cameras, still remains the most effective – on revenue of $ 1.5 billion, the company received $ 219 million profit. Things are going so well that Sonu buys a similar business of the competition.
Sony is going through difficult times in the mobile market and wants to close this direction, then changes his mind. Support units costing companies dearly, but because the way to increase margins and at the same time reducing the volume may be the right way – and smartphones will be the company’s portfolio and the negative impact on the rest of the divisions in financial matters will be reduced significantly. On equal to struggle with the current great smartphone marketleader at Sony we are not ready.