Sony Mobile profits hit breakeven in first quarter; 3.1 million units shipped

by XB on 29th July 2016

in News


Sony-buildingSony Corporation reported its first quarter results earlier today for the three months to 30 June 2016. Unfortunately, the mobile division is still struggling. Sales during the first quarter fell by 34% year-on-year to 186 billion yen, however Sony was able to report a broadly breakeven operating profit position of 0.4 billion yen ($4m).

The drop in sales was due to reduction mid-range smartphone sales along with a decline in sales in unprofitable geographical areas. Regarding the latter, Sony is already implementing downsizing measures in regions such as USA, India and China. Sony says that this reduction has been partially offset by higher sales of premium smartphones.

Overall, Sony Mobile shipped 3.1 million Xperia units which represents a 57% decline over last year (7.2m). Sony has trimmed its full year forecast from 20m units to 19m units, which Sony is blaming on a lower than expected performance in Europe. It’s a shame that we continue to see forecasts being trimmed for this year. We hope Sony has some great handsets in its line-up for the second half of the year to turn this around.

Sony Xperia Q1 FY2017 results

Sony Xperia united shipped Q1 FY2017

Thanks Rony and Steve!

  • Mr. Mackey

    They should concentrate on the z series and not on the overpriced x series!

  • Makozak

    At this rate, i’m afraid that Xperia will end up like VAIO :(

  • SONY™
  • Maxim Zareckiy (23+)

    On the bright side – they’ve stoped the bleeding. It’s a very good sign for division and an important argument for Big Sony to keep Xperia running.

  • ryq24

    Sony would be lucky if they could sell 10 million this year. Their saving grace are the XA and XA Ultra. Their premium X and X performance are a dud. Sony mobile might just as well close shop.

  • Spontex

    Hello ! Is Q216 march april & june ?

  • EQ

    Why? I reckon most companies have had their bad times due to dumb decisions but it doesn’t mean they cant do a comeback. Also competition is good becouse it gives the buyers better prices, drives technology forward and allows for more choices.

  • Shane Falco

    Can i direct the sony mobile division?

  • Battel

    How they did stopped the bleeding ?

  • Battel

    “The drop in sales was due to reduction mid-range smartphone sales along with a decline in sales in unprofitable geographical areas. Sony says that this reduction has been partially offset by higher sales of premium smartphones .”

    Then return to the Mid-range smartphones, NOT THAT MID-RANGERS WITH PRICE OF OTHER FLAGSHIPS !

  • Harut Hajin

    Look at chart most top profits in T, TX years , Z , Z Ultra years , , would be only great when they will produced not as many diiferent models , they must do like old times , new deign every year , X10 , X8 , Arc , S, ion , TX , T , Z , Ultra ,

  • EQ

    I dont think so..

  • GregLu

    They used some hemostatic gauze and then started crying.

  • Alvin

    Why? Because their hard work stopped at Q4 2014

  • Alvin

    Yes

  • agramonte

    Not surprised. I have no idea who is running their mobile in the USA but they do one stupidity after another.

  • bun_ji

    I think Sony has a plan for the future. Sure, there decision are sometimes dumb as you can see. But they have something in mind, at least i hope so…

  • Chaturanaga Manchanayake

    Precisely, after they started changing minor hardware stuff in the phone people got bored of it. cause it’s the same design same internals. So sad :(

  • Prateek Bhanushali

    It is pretty clear. Look, First came Top level personnel mentioning their intentions to turn Company into profit. Then came the forecast, suddenly dipping in huge values. Then Xperia X series came and Prices were insanely high. Even features were purposefully slashed off (No 4k, No fingerprint scanner for US).
    Remember, when Sony was untill Q4 2014, making huge losses !!! Now its below 3.5m and there is profit already. Sony is reducing the manufacturing or (Operating) costs by decreasing demands via inflated prices, Or it is impossible that Sony dives from 9m to 3m sales figure that soon. So everything is part of a plan :) Cheers ;)

  • Marinko Agic

    Overprice is part of big plan!

  • illstplaya .

    Sony please spend some money on marketing. Why won’t you market your phones

  • Junior Rider

    Hopefully not until 2018. What they’re going to announce on Sept. 1 needs to be BIG which should at least increase their competitiveness in the market.

  • Junior Rider

    I hope it will be part of their announcement this coming Sept. 1, a day before IFA kicks off.

  • RockStar2005

    lol………… yeah only cuz they cost-cut. They need to grow some BALLS and advertise MUCH more here in the U.S………….billboards, TV ads, etc. Release phones via the carriers again, once a year not this idiotic twice a year release schedule BS, release the phones on time EVERY TIME, etc.

    It really is good to know they’re in the black again though, finally, even IF it’s only b/c they’re going in the WRONG direction. They should be looking to grow, not shrink. F me, will SOMEONE please give me I dunno, $20 billion, so I could buy Sony Mobile out and put them BACK on the world throne where they belong?? lol It amazes me how they can make the greatest smartphone line EVER yet be so incredibly inept when it comes to running things. I mean to call them stupid might still be a compliment. lol

  • Junior Rider

    it’s not their division in the USA whose to blame, it’s the whole Sony Mobile’s fault whose pricing policy are ridiculous, marketing strategies are absurd (or do they really have one) and after sales service are terrible.

  • bookworth

    In 2014 they shipped a lot of phones that later turned out to include self-destructing glass (front/back). This reputation brought a lot of damage.

  • Junior Rider

    But Sony doesn’t give a better deal when it comes to pricing.

  • Alicetwalden3

    <<o. ?????????????????????????????????????????????????????:::::::!!bt101p:….,….

  • Aiden Pearce

    oh come on
    try selling a mid ranger device with premium price tag in Indian market(it is one of the largest growing mobile market) and finally decide to fade out, this is what happens.

  • Maxim Zareckiy (23+)

    “breakeven operating profit position of 0.4 billion yen ($4m)” =/= loss. Honestly it’s the first recent quarter when Xperia didn’t LOSE money.

    It’s like with TV’s, they’ve cutted them enough to the zero losses and then started to make small but steady profits. Once again, this info is very far from great, but in the long run it’s a good sign (if they’ll manage to keep even or small profit throughout the whole fiscal year).

  • Jenniferrcastillo3

    <<o. ?????????????????????????????????????????????????????:::::::!!bt459p:….,…

  • Mars

    Sony Mobile will be missed, but it’s fanboys ..not so much.

  • EQ
  • Mars

    Little kid I bet you owned more Samsung phones than me.I sure have bought more SONY phones than you ..and with my own money , not with the allowance money from my parents.

  • Talos the Robot

    After the X series announced in February (in order to be released 5-6 months later) the sales of the Z5 series totally went downfall. Nice Job Sony… you make your rivals life easier!

  • EQ
  • Ana Heluši?

    And Vaio made profit this year for the first time :))

  • oih,really a great

  • Jecht_Sin

    Yeah, blame Europe. Sure in Europe the sales are getting lower, most people don’t even know what an “Xperia” is. Maybe if Sony works a bit more in the marketing of the Xperia brand things could get better? According to the tv commercials in Italy there are only three brands of phones: Apple, Samsung and now Huawei. I think even Nokia disappeared.

  • Manu

    Overpricing phones seems to work for profit – unfortunately. :-

  • Alvin

    Yes, they must do something before it’s too late (it is late already, but don’t let it be too late to change everything, because when Nokia was gone, I suffered from depression for three days, I can’t imagine how many weeks if Sony will go to a same fate as Nokia)

  • skrug

    No, Sony’s fiscal quarter starts in April ends in June. April-June is Q1

  • dragonsneeze

    But it’s not the profits chart. They sold more units in those years, maybe more profits too but they still stuggled. I don’t remember if they were at loss or not but this article makes me think it’s the first year they are not.

  • Nikhil Yadav

    They were shrinking the size of company to keep it alive. Now they wont be able to make losses and their fans (the Sony patriots) will not have to switch to shitty phones. We got ya Sony. My next phone will be whatever Sony releases with Nougat Out of the box

  • That’s actually true. I never saw another Sony phone ad in TV since the T (James Bond ad) and the Z (the Holi Festival ad) era.

  • NotAFreetard

    It’s not about marketing, it’s about paying bloggers. Sony refused to pay a well known Android blog, so they gave it a shit review, consumers are lazy and just believe the internet. Next time blog asks for more money. It’s a protection racket basically. Somehow legal in America.

  • azzido

    the new Xperia is going to be named XR :(
    So no Z6 on horizon…

    Besides, the only change to X poorformance will be 4gigs of RAM and usb-c…
    it is too small to attract the clients. As usually, no any signs of S-Master amplifier :(
    Same Snap 820 while 821 and 823 will be delivered by other manufacturers… Same 32gigs of ROM.

  • azzido

    Also the new icons for apps, especially e-mail and messaging are horrible, looks very bad, I hope thgey will correct it before the launch, I saw these terrible ones to be included in my Z5 as well :(
    Design is going to be no longer the deal when it comes to Sony unfortunately :(
    Soft with icons + materials of plastic frames and no glass back.

    Waiting for IFA.

  • Bashar Shehab

    That’s why they gave you the option to install icon packs.

  • Bashar Shehab

    The one who started this rumor must be killed.

  • Battel

    Is that what Hirai referred as Alternative action ?

  • Battel
  • Ashraf Nabil

    As a Sony or Sony Ericsson user in previous 6 + years, I am waiting for Nokia New lineup. Are other Sony fans waiting as well for Nokia ?

  • Andy Wardell

    If they want to make strong profits again like they did with the Z2, then they need to be cutting edge again, like the Z2 was. First 4K recording smartphone (to my knowledge), first smartphone with 3GB ram, waterproof, highest ppi screen at the time of release.

    Their profits were because they were better than their competitors. Since then it seems the competitors always have better products (though the Z5 ultra could be considered the most cutting edge with it’s 4K screen).

    I went to best buy and checked out the X performance today. It’s a beautifully designed phone but it’s internals don’t make me want to upgrade (or downgrade from 4K recording) from the Z3

  • Matt

    torrents of “professional accountant” and “product development manager” incoming

  • Ailan Hidaz

    You know it’s possible to use another camera app and achieve the 4k Recording right?
    The internals are not that bad, considering the Xiaomi mi5 has s820 and 3gb ram as well, and also doesn’t record 4k.
    That said, the XP is kinda of a letdown not because of internals, but because it’s literally the same phone as the Z5 with a slightly better cpu. The GPUs are practically the same though.

  • Ailan Hidaz

    The S-master amplifier will NEVER be used in Xperia phones because Sony are keeping it exclusive to their audio devices (walkman range, stereo systems etc.). Just the same as the amazing camera software is stuck in the camera department. Sony Mobile is like the forgotten child in the Sony family lol.

  • Ailan Hidaz

    Ironically they invested a lot in advertising in the MIDDLE EAST. A region of the world where people already blow all their cash on mobiles as if they are clothes and need the latest fashion right away.
    You can’t spend 5 mins on the highway without seeing ads of the X series, or the Z5 family.
    Plus youtube in the middle east is plagued with X dual ads before videos.
    It’s almost disgusting lol.

  • roeshak

    how many people actually visit techblogs. there are hundreds of millions of consumers in the smartphone market, the majority of whom never heard of android authority or phonearena or gsmarena or pocketnow etc etc.

  • roeshak

    Sony mobile are now a small player in the game whose position and influence keeps diminishing. at this rate they’ll be lucky to ship 12 million units for the year. all that talk of aiming for 50 mil year on year and becoming number 3 in the market is gone now. those ambitions we heard from them in 2013 now just a pipe dream. by every measure, it’s total failure lol. they chose to stop competing and so got overlooked by most in the market place. today they sell over priced under specced devices to those who’ve just gotta have Sony lol. most normal users who had Sony devices have moved on

  • Joanrclark3

    <<o. ?????????????????????????????????????????????????????:::::::!!bt727p:….,….

  • Abdul Ghani

    he is a lame looser why reply to him at all just flag his comments

  • Deads

    I think they lost money on the issue that they were usually to late to the market.
    The competition usually had their phone with the new top soc out way before Sony.
    So Sony usually didnt have those few months where they could ask top prices, they came to the market when the prices for the top phones had already dropped.

  • Deads

    People are aware that the X series phones dont contribute to these figures, right?
    The X phones are only just arriving to the market, and Q2 doesnt always go from april to juni.

  • azzido

    paid icon apps? Or there are free ones as well?
    I’ve got the feeling that they are making the UI uglier just in purpose to sell you the good looking elements separately…

  • azzido

    The sales shows that the X naming convention and X products are just fail.
    I do not know why the clown is still keeping it blindly and do not see people want Z naming and Z quality to be back and less and less people will be interested in X failure only :(

  • azzido

    XperiaBlog I wonder how many Z4 tablets was sold so far, do you have such an info by any chance or could ask Sony about it? It is strange but its price seems remain on the same level for very long time :/

  • dragonsneeze

    I don’t know about the rest of the world but they were not late after Z1. It maybe is about the 6 month release cycle, the socs were essentially the same for the newer model like 801, 810. So even though there was a new model, there already were older models (from sony too) that were cheaper with the same soc. What you said definitely happened with the X. Until it was available all other flagships got cheaper.

  • Bezels for the win !

    really , only idiots believe in that boolcrap…

  • Bashar Shehab

    The X UI is ugly? OMG that’s the funniest thing I’ve ever heard.

    And no, there is no icon packs provided by Sony, you can go to Play Store and download any Icon Pack you see (it may not work just yet because this feature is still new on Sony devices)

  • Phil Gym

    After Z3 Compact, Xperia went wrong for some reason. Z3+ was a failure, 4K display was a failure, X family is mediocre

  • Junior Rider

    I think X series is not yet a part of that sales figure. Yes X series was announced last Feb but the actual phones only arrived this July onwards.

  • Junior Rider

    I think X series is not yet a part of that sales figure. Yes X series was announced last Feb but the actual phones only arrived this July onwards.

  • Yasir Fawad

    Leaving out usa, China, and india? Then What else remains for Sony? It means they are leaving the mobile market in the near future?

  • Lynettechunt3

    <<o. ?????????????????????????????????????????????????????:::::::!!bq181p:….,….

  • Ailan Hidaz

    Depression? Do you have relatives who worked in Nokia or currently working in Sony? Who gets depressed over a corporation going out of business lol

  • Jenge Engelbrecht

    Quite interesting how the Z1 and Z3 has the best sales in the history. Two phones I really enjoyed and still have. Both still working as good as the newest on the market

  • marcyff2

    in the uk there was an advert for the x. Targeted advert for an asian family in the uk. It’s balsy of them to do so, but i don’t think they are popular enough in the market to make such adverts

  • Timel

    Last month I visited Malaysia , Thailand, Vietnam and Philippines, I spent 2 weeks visited these countries you know ? What I see, the big driffrences between Samsung and Sony in these countries and they are all the same , they’re adverstings and stores

    I see Samsung Galaxy S7 series ads everywhere , big galaxy s7 billboards everywhere , street, stain station , shopping mall yeah I went to shopping malls there’re lots of Samsung stores, every smartphone shops have Samsung phones , the big samsung boot in those phone shops while Sony Xperia… Gosh I couldn’t see Sony smartphones , not even Sony xperia billboards, this is the big diffrence between Samsung and Sony , Im not suprise at all if Samsung will outsell Sony in ASEAN market as well as other market around the world

  • Alvin

    No, I just lost it when the ceo said “we didn’t do anything wrong, but somehow we lost”. It’s just an expression btw, I didn’t really get depressed, but I just felt a single pixel of my life lost lol

  • EQ
  • Ryuzaki Raiga

    deads said based on sony erricson era when they use difference design for each phone but when sony bought Ericsson and emerged as SONY mobile, Sony manage to put latest SoC. the bad thing is design language is same which is square even in this blog back when sony release Z2/Z3 there’s people complaining about same omnibalance design.

    people who miss omnibalance from xperia Z never knew about sony erricson era when they give each phone design language just like nokia did back in 00’s. people who complaining same omniblance might be move to others brand.

    people who love omnibalance might be the only fan sony have right now because in my country malaysia people buying cheap alternative such as Lenovo, Asus, Xiaomi. although majority still using samsung.

    the only success phone sony got back in 2013 when sony release all design that sony create back in SONY Ericsson days. Z family, SP, L , M, E each of them has different shape and size.

  • Ryuzaki Raiga

    agree with you, profit increase because the reduce the cost not because xperia become succesfull, i hope sony can repeat what they did with 1st Z family

  • Ryuzaki Raiga

    Nokia lost because they don’t understand how today smartphone were different then back in 00’s. people want latest SoC, latest Android, ect

    just look at mid 00’s smartphone, they just changed little thing because back then progression is slow in smartphone than today is

  • The One

    You’re absolutely correct, but it does show how Sony shot itself in the foot by announcing a new product line in February, but didn’t release it until July. No one is going to buy the last generation phone knowing the new one is on the horizon. Though, this year might be different for the flagships since the Z series is generally considered more advanced than the X series.

  • Ivan

    What do they expect… my Z1 looks almost identical to the newest xperia X…
    And under the hood things are not progressing very much as well.
    After 5 iterations over 3 years, the phones are almost the same.
    Where are the innovations?

  • Abdul Ghani

    up voting your own comment hahahahahahaha my god u do live in your grandmas basement

  • Aldi Wan Kenobi

    They’ve been doing a very limited and targeted audience only…mostly in sports as you have seen in the recent World Cup and Champions League games. It’s not exactly adverts but you’ll see their branding in the electronic boards during the matches.

    I guess Sony Mobile just does not have a budget for a full blown primetime TV advert, they have to make the most with the little resources they have.

  • Bashar Shehab

    Nope it doesn’t show that. Actually if you were keeping up with Sony news you would’ve known that Sony expected 20% less shipments this year. So it’s all a part of thier plan

  • dragonsneeze

    A long time has passed after the buy out. In term of new design, yeah that era was pretty rich. But I don’t think it’s a design issue. When Samsung moved to glass and metal they still used the same shape as previous models not to mention it was already used by like 2 older Xperias before with water resistance and SD support. New iPhone is almost the same after 2 same looking models. Sony wanted brand recognition so they stayed with the same design. It’s understandable but this made it look like the new model did not have anything new to offer other than the newest soc. This shouldn’t be a problem because Sony took good care of their flagships but the spec race has gotten ridiculous and qualcomm’s problems last year definitely didn’t help. There’s only so many ways to design a touchscreen phone and I think Sony has a pretty solid understanding of aesthetics and function. They are just generally not over the top like others. Which is appreciated by me actually :)

  • EQ

    Can I call you Bob? Okey Bob what I want to ask you is, do you even jelly? Looo!
    https://s-media-cache-ak0.pinimg.com/736x/d8/5d/86/d85d86959170047bb74d6fa74212110f.jpg

  • EQ

    That should send a signal to the CEOs about what worked. That was the recipe people liked.

  • azzido

    The reason is noone cares about “not that bad” specs when it costs so much and much more than the competition with better specs now (S7). When paying so much you want the cutting edge specs and not Just mid-range specs as X poorformance is. Poorformance still has only 3GB of RAM like last year flagships, still 1080p only, screen size decreased, Battery decreased, no official 4K recording, plastic frames instead of aluminium, still same rear camera with the same issues: huge noise, poor low light shots with blue hue etc. And the camera hump is just OMG!

  • azzido

    If Sony will not deliver now and again provide as with the failure comparable to X series I will be looking for new HTC, iPhone or maybe OnePlusFour. I will be looking into many online reviews to choose new phone.

  • Mars

    In before Q3 16 – 2.3m Xperia units sold. So to answer your question , yes everybody knows the quarter with the X series phones will be much worse.

  • Bezels for the win !

    Italy is not representing whole Europe there are other countries as well you know….

  • dorothybfitzpatrick

    <<x:r. ?????????????????????????????????????????????????????:::::::!!bc270a:….,…

  • azzido

    Yesah the failure was expected and part of their plan…

    Keep.Dreaming
    +
    Make.Believe

  • Ailan Hidaz

    Do note that I mentioned that the phone is a letdown, because of fact that it is exactly the same phone as the Z5.
    Which means it’s priced ridiculously.

    Also I’m pretty sure these phones were meant to be mid-ranged but Sony’s CEO probably forgot to mention that to the marketing department and they are all selling the phone as a flagship…

    The funny thing is that the M5, clearly a mid-range, has features these phones don’t have: great price, water resistance, 4k recording and good low light performance.

  • Bashar Shehab

    You better sleep boi this blog isn’t for ignorants.

  • Ailan Hidaz

    You’d have to be pretty misinformed to assume that the Z1 and X are in the same level “under the hood”. That 650 processor can run circles around the Z1, and the sensor is technically miles ahead. You have to blame Sony’s horrible camera software for the atrocious image quality, not the sensor.

    And don’t you know? The newest Sony innovation is removing water resistance!

  • KarFar

    Note7 announced with HDR support, damn I wanted Sony to be the first to use this tech on smartphone :(

  • Khillo81

    It’s amazing the kind of crap people keep on spewing. I’ve never once seen an Xperia with a broken screen; loads of Samsung and Apple though feature a shattered screen. But yeah sure, Xperia phones are badly built (sigh)

  • WHATTHE

    In Israel SONY does not anything, no even 1 AD

  • WHATTHE

    it’s not big

  • Ivan

    What do you suggest with “That 650 processor can run circles around the Z1? ”
    What’s the real-world implications of this?
    If someone not tech savvy is given an Z1 and an X what difference will they see?
    What more can u do on X than a Z1?

    I mean it’s a freaking phone. The innovations should be around usability and ease of use. Sticking the latest Qualcomm chip is NOT innovation, it’s what everyone else does…

  • Ailan Hidaz

    You said under the hood things are not progressing well, despite the fact that the processor is like 4 gens ahead. The camera sensor is advanced by 2 gens, and the rubber sealing (and water resistant flaps) have been changed for the better to enhance water resistance in all phones AFTER the Z1. Hell they don’t have usb flaps anymore in the M4/M5 Z3+/Z5 or even the XP.
    So yes, there was progress according to internal specs – Even the camera software has become a little more streamlined and faster for taking quick pics.
    Average non-tech savvy users will probably see the difference in using the phone’s UI alone.

    If you apply your logic, what more can any of the other brands’ flagships do that their older flagships couldn’t?
    And just what are you expecting the X to do? What did you expect Samsung to do with their Note 7 and their older Note 3/4/5?
    I mean do you see innovation there?
    I’m sure the iPhone 6s plus brought so much more than the 5s or 4s.
    About the only companies that took a huge gamble were LG And Lenovo, the LG G5 with it’s friends (despite that taking a toll on the phone in general), and the Moto Z series, which has it’s ups and downs thanks to the “innovation” of mods. The actual phones are just average in terms of everyday use.

    I really want to know what you claim to be innovative – No sarcasm here, I’m genuinely curious.

  • Ivan

    You need stand-out features to sell new versions of your phones, not gradual improvements.

    What the others did:
    Apple – For the first time went large form factor
    Samsung – Curved screen
    LG: Tried some gimmicks. At least points for trying

    What Sony did – you said it – just minor improvements on the rubber and slightly better camera sensor.

    The only reason i liked Xperias was the design. But it hasn’t really changed for 3 years now.

    Every other improvement is just what everyone else does anyway – sticking the current Qualcomm chip, the current Android version and off we go.

    What I would like to see is the improvements on the design front – keep the overall design, but reduce bezels, put back notification lights similar to Z2, try something with curved glass, I think it will look sick with the edgy Xperia phones…

    That’s what will sell phones, not xx% improvements of the camera/cpu/xxx

  • Ailan Hidaz

    Your points are all valid (except maybe the “innovation from Apple…lol really? Large form factor? Android makers from all over did that way before apple did – that’s not innovation) but the problem is that Sony as a mobile vendor has stopped pushing the envelope ever since Ericsson was absorbed into the brand.
    Remember all the Xperia or SE phones from yesteryear? They were pushing boundaries and trying new things.
    The new sony is just doing what others are doing and treading softly. – unless you count the world’s first 4K display used in a mobile phone with the Z5P…

    My guess is the XR, or whatever the next phone will be called, is going to have a few new features but ultimately no innovation at all. But at least it will have a somewhat new design right?

  • Manuel Maldonado Turcios

    Sony lost my business with phones after owning 4 Sony phones since Xperia Z. Getting my Note 7.

  • bookworth

    perhaps you are just blind.

  • Khillo81

    I don’t know. I can see your idiocy from way over here so my eyesight can’t be that bad. But then, your idiocy is pretty huge.

  • jkbox

    Overall, I believe Sony came a long way in improving their products. I believe they did a very good job in the recent years. Product testing and research have grown since early 2000. Better than SamSung, their battery on their Note 7 exploded or soon their S7. SamSung suffer a huge returns of their phones.

  • jkbox

    SamSung really failed to test their batteries…That is even worst. And they overpriced their phones to $1,000 each.

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