Troubled Waters Lay Ahead for Sony as it Registers $1.2 Billion Loss
Billion is an amazing number. It is used to signify the number of stars in the sky, the populations of India and China, and the number of atoms in a human body. But for Sony, the term means time to take drastic measures. The Japanese consumer-electronic giant has been in troubled waters for a while and seems like it’s not going to come to an end anytime soon.
The company has registered a record loss of $1.2 billion. This has led the company to decrease its smartphone sales figures from 43 million to 41 million. This came after the company has decreased its sales projection from 50 million to 43 million in this financial year that runs from April 2014 to March 2015.
There is some silver lining in this bleak news from the once-unanimously valued brand. The company saw an overall sales increase by 7.2% to reach $17.4 billion. Sony’s latest gaming console, the PlayStation 4, is the most visible product that is holding up its fort as of now.
The Japanese company has been in damage control mode for a while. It increased its marketing expenses, and research and development expenses, in order to expand sales. This may pay off in some key markets.
Sony’s latest flagships have been appreciated for their features, but they come at a flagship price range. Hence, the phones haven’t been able to provide the company the revenue they require. Sony has also given the charge of its smartphone business in the hands of a new head, Hiroki Totok. He will replace the current head, Kunimasa Suzuki, on 16th November. Hopefully, the infusion of new head might bring some ideas that will help get Sony back on track. Or else, it may go the way of Nokia, which is, fortunately, not a possibility as of yet.