Andre Yoskowitz
18 Sep 2014 0:13
In another shocking announcement, Sony has raised the forecast for their expected annual loss by 400 percent to $2.14 billion.
For the fiscal year ended March 30th, 2015, the company expects to lose 230 billion yen, up from an already raised 50 billion yen forecast.
Sony cited poor sales in its smartphone business, due to major competition in the space.
"The new MRP (Mid-Range Plan) was modified to address the significant change in the market and competitive environment of the mobile business," Sony said in a statement. "Under the new MRP, the overarching strategy for the (mobile) segment has been revised to reduce risk and volatility, and to deliver more stable profits. This revision includes changing the strategy of the (mobile) segment in certain geographical areas, concentrating on its premium lineup, and reducing the number of models in its mid-range line up."
Sony has taken significant share in Western Europe, as high as 11 percent by some accounts, but the price reductions and marketing have taken their toll on profits. Sony also has no share in the U.S., at just 0.2 percent of the market dominated by Samsung, Apple and LG.