Sony’s mobile division has been unprofitable for four years, and sales of Xperia smartphones have declined for 26 consecutive quarters. More precisely, they were declining. how should from the latest financial report of the company, in the last quarter the decline stopped.
During the reporting period, Sony sold 0.6 million smartphones – exactly the same number as it sold last year. In other words, Sony has finally managed to stabilize Xperia sales after more than two years of steady decline and after an all-time low of 0.4 million recorded in the first quarter of 2020.
Not so long ago, Sony has carried out another restructuring, liquidating a separate mobile division. More specifically, Sony has merged the Imaging Products & Solutions (IP&S), Home Entertainment & Sound (HE&S) and Mobile Communications (MC) divisions into one division called Electronics Products & Solutions (EP&S). According to the results of the last quarter, EP&S showed an increase in revenue and operating profit.
However, in its previous quarter report, Sony predicted the first profit in four years for the mobile division. In the latest report, the company does not say anything specifically for the mobile division, but predicts that EP & S’s revenue for the year will be approximately the same as last year, with higher operating profit.
That is, everything indicates that the worst days for Xperia are behind us and the business is showing the first signs of recovery. Recall that the line of Sony smartphones of the 2020 lineup consists of four models – the flagship Xperia 1 II, the mid-range Xperia 10 II, the state-owned Xperia L4 and the compact flagship Xperia 5 II.
At the same time, the smartphone camera sensor business, which has been one of Sony’s main pillars for many years, seems to be getting sick. In the last quarter, the I&SS direction recorded a decline in revenue from sales of image sensors. The company also had to write off some of its smartphone camera sensors that were gathering dust in the warehouse amid rising research and development costs.
As for other key products, during the reporting period, Sony sold 1.5 million units of PlayStation 4 consoles (versus 2.8 million units a year ago) and 2.7 million TVs (2.5 million units). At the same time, Sony did not disclose the sales of digital cameras – 0.7 million units were sold a year ago.
In general, for the quarter, Sony received revenue of $ 20.28 billion (a year ago it was $ 19.76 billion). Operating profit for the year increased by 14% (to $ 3.05 billion), and net profit – by 145%, to ($ 4.41 billion).