Sony's profit falls on yen, lagging cellphones, Japan quake

Jul 30, 2016, 00:53
Sony's profit falls on yen, lagging cellphones, Japan quake

The sensor division that included batteries is profitable, but their production was costing Sony $270m a year as rivals like LG, Samsung and Panasonic outsold the firm.

We already knew the firm would take somewhat of a hit this quarter after it warned of the impact that the Kumamoto quake had on its manufacturing operations nearby.

The Sony Pictures Division, made up of the company's TV networks and the Sony Pictures studio, posted a loss of $103 million for the first quarter, even as revenue rose 7%, Deadline.com reports.

Its movie division benefited from the popularity of "The Angry Birds Movie", Sony said.

This significant decrease was mainly due to the impact of foreign exchange rates, and a decrease in Mobile Communications segment sales reflecting weak smartphone unit sales.

Consumers continued to warm to Sony's PlayStation 4 console and games nearly 2½ years after they were first introduced.

SONY CORPORATION continues to have a tough time after the firm's Q1 2016 financial results showed an expected revenue adjustment from $16.2bn to $15.35bn.

Operating income was 56.2 billion yen or $546 million, down 42 percent from the prior year. Sony is tapping into the rise of VR with PlayStation VR, its $399 take on things which is due to arrive in mid-October.

"Nothing short of fantastic, especially given that the market has been expecting a loss", Amir Anvarzadeh, Singapore-based head of Japanese equity sales at BGC Partners Inc, said in an e-mail. Sony said the dollar dipped from 121 yen in the same quarter the previous year to about 108 yen for the period through June. Without currency effects, the business posted a 25 per cent increase in sales from a year earlier as consumers continued to warm to the company's PlayStation 4 console and games nearly 2½ years after they were first introduced.

PlayStation Network revenue accounted for nearly half of the division's overall sales, sitting at 46 percent.

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