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Sony profit increases, smartphone sales still low

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Sony profit increases, smartphone sales still lowSony reported a net profit of $261 million for the first quarter of 2014 – welcome news for a company that experienced such heavy losses in 2013 that it had to resort to selling off its assets. The quarter’s operating profit of 69.8 billion yen ($680 million) was almost double what the hardware giant attained during the same period in 2013.

Profit-wise, Sony’s impressive performance can be attributed to two things: its latest video game console, the critically-acclaimed PlayStation 4; and the blockbuster success of its biggest movies, such as the buddy cop comedy, 22 Jump Street and eagerly anticipated super hero flick, The Amazing Spider-Man 2.

When it comes to the manufacturer’s smartphone sales, however, Sony hasn’t been doing too well. Its Xperia smartphone business has suffered a loss of 2.7 billion yen ($26 million) for the first quarter of this financial year. Because of this, Sony’s sales forecast for the year has plummeted from a projected 50 million units to just 43 million. Despite consumers’ warm reception of the flagship Xperia Z2, Sony hasn’t been able to turn a profit from the mobile device.

As Sony restructures its business units, the company is expected to accrue a loss of an estimated $487 million over the course of the year.

Via [Android Central]

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