There are lots of things that Sony wish hadn’t been invented (including many Sony creations like Blu-ray), the smartphone is just the most recent addition to that list.
Originally posted on Quartz:
Sony, the Japanese consumer electronics colossus, had some bad news for its shareholders last night.
The company that once made Walkmans and still makes Playstations and televisions (and owns major film studios and record labels) said it expects its annual loss to be nearly five times as much as previously anticipated. It is also suspending its dividend for the first time since 1958.
The reason: a ¥180 billion ($1.6 billion) write-down of its mobile communications segment, which accounted for about 20% of the company’s total business last year, according to FactSet.
In sum, Sony now expects to earn less from that business than it had previously forecast. Why? It’s changing its strategy in mobiles to concentrate on premium products and reduce the number of mid-range models it produces. Over the long term, it thinks this will deliver more stable profits. The company now expects to lose about ¥230 billion this fiscal year (which ends next March), which would be its sixth loss in seven years.
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