Sony Ships 5.1 Million Xperia Smartphones in Q4 2016, Lowers Full Year Forecast to 15 Million Units
Sony has released a financial report for the last quarter of 2016, and things are still look downhill for its mobile division. Shipments and sales have fallen, and so have operating profits for this division.
The Q4 2016 report showcase that Sony managed to ship only 5.1 Million Xperia smartphones in this three month period ending December 2016. This is a reduction of around 33% when compared to results from the previous year.
Sales decreased 35.3% to 248.6 Billion Yen (2,143 Million USD) which is a significant decrease. This has been attributed to a reduction in smartphone unit sales in Europe as well as the result of downsizing in unprofitable regions from the previous fiscal year.
Furthermore, operating income decreased 2.9 Billion Yen year-on-year to 21.2 Billion Yen (183 Million USD). Sony admits that cost reductions from restructuring initiatives and positive impacts of foreign exchange rate fluctuations could not offset the impact of declining sales. Sony does remain on track of achieving an operating profit for the year despite the decline, though.
In line with the reduction in sales, Sony has lowered its full year forecast from 17 Million units to 15 Million units shipped. This is the fourth cut to full year shipment forecasts in this fiscal year, as forecasts from Latin America and the Middle East have been revised – bringing a downward impact.
It will be interesting to see how Sony manages to compete against the new set of competitors this year, in light of the downsizing efforts and product lineup consolidation in several markets. Can the mobile division rise up after all?