Sony foresees $1.2 billion loss from its smartphone business

Sony has shared some bad news regarding its financial quarter forecast. The company is expecting its losses to quadruple due to "impairment" in its smartphone business. More specifically, in the summer of 2014, the company reviewed its stance on the mid-range smartphone segment and concluded that results weren't as bright as anticipated.

As a result, Sony expects its Mobile Communications segment to lose $1.2 billion (180 billion yen). A cringing number indeed, which has made the company reevaluate its stance on the smartphone division. No longer will Sony seek significant sales growth, but instead focus on reducing risk, volatility and return more stable profits.

Sadly, Sony will reduce its presence in the mid-range segment and change its strategy in certain geographical areas. Nothing specific has been mentioned, though. Still, further plans include focusing more on its high-end smartphones.

The Xperia Z3 and Xperia Z3 Compact are soon to launch and Sony is hoping they're going to be selling like hot cakes. We already reviewed the Xperia Z3 Compact and were charmed by its flare and great battery life.

Source (pdf) | Via