Sony makes a profit after five years of losses, Android helped!
The electronics and entertainment giant Sony Corporation has made its first profit in five years and according to its fiscal report the company saw its sales increase by 4.7%, primarily due to the benefits of folding Sony Mobile, what was Sony Ericsson, completely into the company. This is good news for the Japanese company which in the same period last year made a loss of around $4.6 billion. Although this year’s profits aren’t in the billions, it is just $435 million, its turnaround has been impressive.
Looking just at the mobile segment, Sony reckons that its phone revenues have increased 18%. This substantial rise was partly due to higher unit sales but mainly due the shift in the market from feature phones to smartphones. Since smartphones are more expensive then the total amount of revenue is higher. Looking at just the last three months, Sony’s mobile phone unit saw an 82% jump in revenue, to roughly $3.6 million. Unfortunately overall Sony’s Mobile Products & Communications business, which also includes personal computers, made a loss of just over $1 billion.
Other parts of Sony are also doing well. Its movie business managed to make $509m in profit because of some big box office successes like The Amazing Spider-Man and the 007 blockbuster Skyfall. Similarly Sony Music reported a profit of $396 million. Its gaming unit managed to make a small profit of $18 million but Sony is still struggling after a 12% decrease in sales of its PlayStation range of products.
Sony is confident that it can keep making a profit and its mobile phone division is expected to see significant increases in sales during 2013-2014, primarily due to anticipated sales of its high value-added smartphone models (i.e. its Xperia range). It also hopes to make more money in the PC arena by introducing more high value-added PCs.
Do you think Sony can compete with Samsung and HTC at the high end of the Android smartphone market?