Japanese entertainment conglomerate Sony reported that its mobile communications business generated roughly ¥132.51 billion (roughly $1.54 billion CAD) in revenue during the company’ first quarter of 2018.
Additionally, the company sold two million smartphones during the same period, compared to 3.4 million devices sold in Q1 2017, and the 2.7 million smartphones it managed to sell in its previous Q4 2017.
Sony’s latest mobile figures represents a revenue loss of approximately ¥48.68 billion (roughly $566.37 million CAD) between Q1 2017 and Q1 2018.
The company’s mobile communications business represents its most significant loss between Q1 2017 and Q1 2018, followed by a ¥30.73 billion loss (approximately $357.54 million CAD) in the company’s film business.
According to a July 31st, 2018 investors document, Sony’s mobile communications segment generated “lower-than-expected sales.”
Sony also said that it forecasts its mobile communications segment to continue to underperform throughout the rest of the year, due to increased competition in the smartphone market, as well as due to “an expected decrease in smartphone unit sales mainly in Europe.”
“Sony is aware that this severe competition could continue to adversely affect the smartphone business in the [mobile communications] segment, and in light of these developments, has begun to assess the possible impact on its smartphone sales projections for the second half of the current fiscal year, as well as possible countermeasures, should competition intensify further,” reads an excerpt from the same July 31st investors document.
Sony hasn’t been shy about addressing its concerns with the company’s mobile segment.
The company unveiled its mid-term corporate strategy for 2018 to 2020 in May 2018, acknowledging the fact that the company’s mobile division has been underperforming.
Sony’s stock price sits at ¥5,828 (roughly $67.80 CAD) at the time of writing.