Sony Struggles In Smartphone Segment, Predicts $2.1 Billion Loss For Fiscal Year
Sony today revised its consolidated forecast for its fiscal year ending March 31, 2015, and the new numbers don't look so hot. Just the opposite, Sony now expects to post a 230 billion yen ($2.1 billion in U.S. currency) loss. The Japanese electronics company also said there will be no interim dividend or year-end dividend of common stock.
It's worth mentioning that this is the first time Sony will have suspended dividend payments since being listed on the Tokyo Stock Exchange back in 1958. How did it come to this?
"The previous MRP was focused principally on achieving significant sales growth. The new MRP was modified to address the significant change in the market and competitive environment of the mobile business. Under the new MRP, the overarching strategy for the MC segment has been revised to reduce risk and volatility, and to deliver more stable profits," Sony explains.
In other words, it's a cutthroat business in the mobile world, especially when you're going up against forces like Apple and Samsung. Going forward, Sony will alter its smartphone strategy to concentrate on its premium lineup and the reduce the number of models in its mid-range lineup, the company said.
It's worth mentioning that this is the first time Sony will have suspended dividend payments since being listed on the Tokyo Stock Exchange back in 1958. How did it come to this?
"The previous MRP was focused principally on achieving significant sales growth. The new MRP was modified to address the significant change in the market and competitive environment of the mobile business. Under the new MRP, the overarching strategy for the MC segment has been revised to reduce risk and volatility, and to deliver more stable profits," Sony explains.
In other words, it's a cutthroat business in the mobile world, especially when you're going up against forces like Apple and Samsung. Going forward, Sony will alter its smartphone strategy to concentrate on its premium lineup and the reduce the number of models in its mid-range lineup, the company said.
