Sony has had another hard year, as CEO Kazuo Hirai works on creating the “One Sony” motive across all platforms, their businesses in television, mobile and camera continue to slope down, losing up to $1.2 billion this year alone.
The company is projecting a ¥90 billion ($1.2 billion) net loss for Sony this annual, with an annual quarterly loss of ¥27 billion (around $400 million). This has come as an unexpected turn, with Sony expected to make around ¥60 billion net profit this year.
Sony blames the strong growth of the Yen, recent flooding in Thailand and bad television sales in the United States and Europe. In response to the third part, Sony has reduced the television sales forecast from 22 million to 20 million.
Compact camera sales are projected at 23 million for the year and mobile sales continue to be a burden for Sony, who cannot compete with the power of Apple and Samsung. This has become even more worrisome as Xiaomi in China continues to expand and manufacturers like Motorola and HTC show growth.
Sony is cutting its operating profit outlook by around 90 percent, to cut more of these large net losses. Sony’s stock dropped 5.14 percent in trading after the news and analysts expect it will continue to drop, as there has been no major positives from Sony, apart from PS4.
The TV industry is one of Sony’s worst losers, in eight years, the Japanese company has accumulated a $8.5 billion loss. This is huge and shows the lack of focus on restructuring and downsizing in Sony, to make sure ends meet.
Sony has been looking at selling off assets, the VAIO Windows tablet business was sold to a Japanese holders company last year. It was rumored Sony would look to put PlayStation as a subsidiary, capable of its own stock trade, to increase Sony’s profits year-on-year.