Sony reports quarterly loss of $1.2 billion, expects full year loss of 230 billion yen
The Japanese electronics giant Sony reported a net loss of 136bn yen ($1.2bn) for the September quarter.
However, the loss was not as much as most analysts had forecast.
The loss has been attributed to Sony’s mobile phone business sector. The sector has been struggling to compete, with rivals such as Samsung and Apple having much more of a grip and presence in the market.
Sony reported an operating loss of 85.6bn yen for the quarter, even though sales were up by 7.2%. The company said the surge in sales was due to a rise in its gaming and network services sales, “reflecting the contribution of the PlayStation 4.”
The company issued a warning in September that its annual loss could be four times more than what it had originally forecast.
Sony now expects a full year loss of 230bn yen, significantly more than its previous estimate of 50bn yen.
It has said that it is going to be reducing its smartphone presence in China – where it has been losing market share to a number of domestic companies.
Its television unit has also been subject to harsh competition, mainly from other Asian rivals such as Samsung and LG.
Kazuo Hirai, Sony Chief Executive, said two years ago that Sony’s electronics business would quickly be profitable again.
However, he said that the company will remain unprofitable until 2015.
Sony sold off its Vaio computer business and is planning to spin off its TV division to run as a wholly-owned subsidiary.