Sony May Make $1.3 Billion Loss During This Financial Year, Smartphone Business Suffering Heavily

It’s no secret that outside the PlayStation sector that Sony is making losses in various departments, leading to an overall bleak financial outlook for the company. This has already led to the company shedding the PC & laptop business, selling it to Japanese Industrial Partners. The money from that was to be re-invested into Sony’s smartphone and tablet business but it appears that cash injection hasn’t been enough to turn things around. At the moment Sony expects to make a $1.04 billion loss on the phones alone.

Considering there have been over twenty Xperia models have been released since 2008, with many of the mid range ones being quite similar to each other, it may be that Sony saturated its own market. If the Xperia brand continues to make heavy losses for the company it could decide to cut its losses and sell it off, just like the computer business. Sony’s TV business is making some money but is not expected to go into profitability until at some point in 2015.

Source: Eurogamer

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16 Comments

  1. I’ve got a Z1 and it’s the first decent handset I’ve had from Sony. It’d be a shame if they sold it off now. Although they are releasing too many handsets now.

    • I like my z1 too, but am tempted by the 32gb z3 :)

    • Consumers are brain dead idiots that don’t see what on sale, and buy whatever the salesman throws in their hand or the brand name that springs to mind (and simply assume safety in numbers that someone else did the legwork). Fashion also plays a big part. A large percent of the iPhone cost for example goes on keeping the press on their side, wining and fine dining and mega advertising budgets to create a cool and hip brand. Ditto for other members of the cool club, like GoPro, Sonos and so forth.

  2. I have a z too, great phone. I just wonder if sonys kind of jack of all trades business can survive and thrive in today’s world.

  3. Wow, they certainly need to change something. I read before that Sony had sold off all the unprofitable sectors, looks like that was wrong.

    • They’ve been trying to seal up the cracks in the dam on a few departments, fella. This is more of a mighty fissure than a crack, sadly.

      • Yep, its a shame as their phones, tv’s etc have always been quality products.

  4. I’ve got Z2 and love it. A magnificent step up from Z. My major grief really is that Sony release a new version every 6 months. Not many people are going to get a phone on a 2 year contract to have it outdated with 18 months left on contract. The only people who can do that are millionaires and drug dealers, of which I’m neither. Also people still love their iPhone’s when the latest version is miles behind Xperia Z on specs.

    I really hope Sony don’t drop Xperia range and stop overflowing flagship and midrange sections because people don’t want it.

  5. Too many xperias spoil the broth….
    I was looking at their mid range phone earlier in the year, but there were just too many to pick from. I just got a Moto G in the end.

  6. I switched from my iPhone 5 to the Z1 (mid contract) and I loved the big screen but it just wasn’t compatible with mac at all. Stuck it out for a week before switching back to the iPhone. My mate got the Z1 at the same time as me and he loves it but he uses windows. Getting the 128 GB iPhone 6+ on Friday so I’ll get my big screen and iPhone in one. Win, win.

    • Sounds like apple have you well and truly locked in. Keerrrchiing.. Your overpriced apple products are basically funding apple to wine and dine media journalists in lavish restaurants in exchange for gushing reviews. That must surly make you angry.

      • Not really. Money really isn’t an issue for me. Apple make premium products and their build quality is second to none. Android phones may have better specs and more options but their products feel like cheap toys for grown ups. To me at least. I’ve tried all the current flagship android phones and build quality doesn’t come close to iPhone. I don’t care which phone is better or how much it costs. iPhone works for me.

      • That’s the thing, as much as people slag off apple, they make quality products and don’t over saturate the market like android phones do. This isn’t me talking from being brainwashed, its my experience from using all the big brands.

  7. Well I hope they keep the Z line because I’d like to buy a Z3 Compact one day. But I can’t decide between Sony’s phones and HTC’s.

  8. I loved my Playstation Phone. I then got an iphone 5 with my renewal due soon and I plan to go back to Sony/Android.

    Apple phones are becoming a little boring. I’m gonna have a few tech demos and go from there, although the ability to clip your phone to a DS4 and game excites me massively!!!

    Here hoping the rest of their sectors follow the Playstation path. They simply need to adjust and evolve their lines and market involvement.

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