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Sony fires mobile chief after losing £1 billion on smartphone business

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Sony

Sony has revealed its latest quarterly performance figures, and once again they don't make for particularly great reading on the smartphone side.

The company has been forced to revise its smartphone sales forecast to 41 million for the year, which is down from July's prediction of 43 million.

Interestingly, Sony's mobile division actually increased revenue by 1.2 percent to 308.4 billion yen (£1.7 billion) since the same period last year. However, the company has been forced to write down its mobile business value by a whopping 176 billion yen (almost £1 billion).

While Sony has created some strong phones in recent years, such as the Sony Xperia Z3, its lack of a strong smartphone presence in both the US and Chinese markets has proved fatal.

It's perhaps understandable, then, that Sony recently fired mobile CEO Kunimasa Suzuki and has replaced him with VP Hiroki Totoki.

Elsewhere, of course, Sony isn't doing so badly. The PS4 has been selling very well indeed, bringing in 310 billion yen (£1.7 billion) - that's 83 percent more revenue than Sony's games division managed during the same period last year.

Sony's devices business also reported a large increase of 187 percent on last year.

Despite an overall 7.2 percent increase in Sony's revenue, however, it hasn't been enough to halt a slide to an 85.6 billion yen (£481 million) operating loss overall. And we all know which department to blame for that.

Read More: Sony RX100 III review

Via: TechCrunch

Matthew Salmon

November 2, 2014, 11:57 am

Very harsh - sony make good phones and were market leaders in bringing in water proofing - which other manufacturers have adopted. The whole mobile market is suffering due to lack of technical innovation. Nothing exciting has been released in mobile marketplace since 4G in 2012..so as a consequence people with 24month old phones aren't seeing a need to upgrade

fried_egg

November 2, 2014, 5:01 pm

Not shocked. The Z-series has been very good, but while they seemed to say they were going to concentrate on a couple of models within months they had 101 different models again. They have a quality look at the premium end, and a brand people remember as quality. They should never have chased the lowend after rebranding to just "Sony" as the chinese have that price point. They should be like Apple. Premium only. "If you cant afford a Sony, you need to work harder" needs to be their marketing thinking.. Aspirational was where Sony was positioned in the 80s & 90s and it needs to get back there - when they used to say "It's a Sony" : Well it's a Sony, not a phone with a make badge. Their problems getting a look in on the American "more phone brands than the networks want to have to sell" market will then sort themselves... Sony would have a "demand" pull rather than a desperate sellers push - they have a quality product and can rescue their legacy branding

Person chap

November 3, 2014, 12:47 am

Business is business though. If the head of mobile was losing them huge sums of money, it doesn't matter how good their phones are. They are not a charity.

For what it's worth though, I agree with you. They have done fantastic work with their phones, and I want one! (Not least of all because they are incredibly good value second hand).

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