Is Sony Mobile Heading For A Full Year Profit?
Sony released its Q3 results earlier and whilst smartphone revenues are falling it is starting to look like the company has turned the corner and is on course to turn a profit when the year end results are announced in April.
The quarter ended December 31st saw Sony turn another profit - the third in succession - although this was smaller than that achieved for the same quarter last year.
Sony's guidance for the remainder of the year notes that sales are falling outside of Japan, however unit prices are turning out to be higher than expected. The net result is that Sony expects to book around $45m in profit from smartphone sales for FY '16 - a significant turnaround from the $550m loss it suffered last financial year. It does also suggest Sony is expecting a circa $160m loss from mobile in the January to March quarter, perhaps as a result of its inability to compete in the Chinese market.
Across the rest of Sony the news was mostly good, with most divisions recording healthy profits. The notable exception being Sony Pictures, which had a bad quarter at the box office and then suffered a billion dollar write-down of goodwill. Despite rumours of an impending sale of the Motion Picture division Sony strongly committed to keeping hold of its own piece of Hollywood.