Revenue from the business that makes sensors, camera modules and memory storage will rise to 1.3 trillion yen ($11 billion) to 1.5 trillion yen in the year ending March 2018, the company said in a statement today. That compares with a forecast of 890 billion yen for the current year.
Sony is ending the development of new smartphones for China and is culling the number of Xperia models as it struggles to compete with Apple Inc. and Samsung Electronics Co. (005930) Chief Financial Officer Kenichiro Yoshida said today Sony would also
cut its lineup of televisions during the next three years to help create a business that could withstand a hypothetical 30 percent drop in sales.
“Devices is a perfect example of a successful enterprise-oriented business,” said Atul Goyal, a Singapore-based analyst at Jefferies Group LLC. “Sony’s technological advantages are truly appreciated by their customers, be that Apple, Samsung or Chinese smartphone makers, more than by the end consumers of final products under their own brand.”
Shares of Sony surged 6.1 percent to close at 2,582.50 yen in Tokyo, the highest since April 2011. The stock has gained 41 percent this year, compared with a 8.2 percent increase in the benchmark Topix.
Kazuo Hirai, President and Chief Executive Officer of Sony Corp., is culling the number... Read More
Games, Networks
Camera modules and image sensors will generate about 63 percent of Sony’s device unit revenue in fiscal 2017, the company said. Sony plans to build on its position as a top supplier of image sensors for smartphones to expand into automotive and wearable markets, the Tokyo-based company said in the release as it held an investor briefing on its electronics operations.“We are about two years ahead of the competition when it comes to imaging sensors,” Tomoyuki Suzuki, corporate executive officer in charge of the device business, said at the briefing.
Revenue from the games and network business could reach as much as 1.6 trillion yen in 2018, a 24 percent increase over this year’s forecast. Home entertainment sales, which includes TVs and speakers, would be 1 trillion yen to 1.1 trillion yen, down as much as 17 percent.
Mobile Unit
Sony didn’t release the sales outlook for its mobile unit, which the company will announce before the fiscal year ends in March.The company last month reported a quarterly loss that was seven times greater than a year earlier as it lost ground in the smartphone market to Apple and Chinese rivals. Sony’s net loss widened to 136 billion yen as it took a 176 billion yen writedown at the Xperia phone business and cut its phone sales forecast for the second time this year.
The company is ending development of new models for China, the world’s biggest smartphone market, and focusing its marketing on retaining customers.
Sony this year sold its Vaio personal computer division and has put its TV manufacturing unit into new structure as Hirai tries to end losses at the business.
Last week, Sony said new Spider-Man movies and content based on PlayStation video games would help drive revenue growth of as much as 36 percent at its pictures unit during the next three years.
Sales at the film unit would rise to between $10 billion and $11 billion in the 12 months ending March 2018, compared with $8.1 billion now, the company said Nov. 18. Music business revenue would be $4.8 billion to $5.2 billion in the same period, representing growth of between zero and 8.3 percent from the current year.
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