Sony lowers full year Xperia units estimate by 11%

by XB on 1st November 2016

in News


sony-xperia-q3-2016-results_thumbAn unfortunate trend when it comes to Sony’s financial results, is that we often see a downward revision to the number of expected smartphone units to be shipped that year. In FY14, we saw three cuts to Xperia unit estimates, in FY15 we saw two cuts during the year and already in FY16 we have now seen two cuts.

Sony had expected to sell 20 million units in fiscal year 2016, but then cut that estimate to 19 million units earlier in the year. Sony released its Q2 FY2016 results this morning and has now further cut the estimate by 11 percent to 17 million units. This results in a 7% downward revision on mobile revenues for the full year to 780 billion yen.

Thankfully, profits are expected to remain at 5 billion yen, despite the sales cut. Sony attributes this to a “better-than-expected improvement in product mix resulting from a concentration on high value-added models”, as well as cost cuts. Whilst it is great to see the focus on profits, it is concerning that Sony unable to drive unit growth in the smartphone space, even when coming from such a small base.

Looking at the Q2 FY16 results themselves, Sony Mobile saw sales decline by 34% on a constant currency basis to 168.8 billion yen. The magnitude of year-on-year decline was similar to that seen in fiscal Q1 and represents a “reduction in mid-range smartphone unit sales, as well as a reduction in smartphone unit sales in unprofitable regions where downsizing measures were implemented during the previous fiscal year”.

Sony also managed to post a Q2 FY16 profit of 3.7 billion yen (37 million U.S. dollars) during the quarter mainly due to cost cuts, lower restructuring costs, positive foreign exchange impact and a better product mix.

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sony-xperia-units-shipped-q3-2016

  • Little Man

    See where the highest sales in a quarter it was for Sony? Q4 in 2014. When was the Z2 released? February 2014. Z3? September 2014. I can’t guarantee these two are the most popular phones ever from Sony (or even in the fiscal year of 2014) but they sure did contribute a lot to their benefits. While the ever exploding Note 7 still lives among 2 million consumers’ hands, Sony has what it’s got to take the crown. To me, Z2 and Z3 will be the greatest Xperia models: good looks, competent cameras (back in the days), wild performance, and behold the nuclear level of battery in the Z3 with legit Stamina mode. Still waiting for them to finally reduce the noise of that disastrous camera and resolve overheating since 2014…

  • ryq24

    The X series was a disaster. Sony should choose whether they are willing to sacrifice profit for better sales or continue their strategy of selling over price but under specs phones and continue to lose market share.

  • Zayed Kotayba

    I agree with you the Z2 & Z3 look so unique compared to competitors offer at the time and I liked the Z5 Premium too actually I bought it because SONY pushed the limits of what they can offer in a smartphone (I know this may offended someone LoL but I think it’s the best SONY device to this moment)on the other hand the X series look so random and SONY could produce much better devices

  • Zayed Kotayba

    And most importantly they are going to lose us (Loyal SONY Fans)

  • Hideg Jenő Péter

    I agree with you. The Z2 is gorgeous metal frame, because peoples attractions to buy it.
    The Z3 isn’t bad, but Z3C is amazing battery life on 4.4 kitkat, smaller body than my Xperia SP. (but shame google requires OpenGL ES 3.1 to run Noguat 7.x, while S801 only uses OpenGL ES 3.0, because Z3, Z2 is popular devices due to frame desgin)
    The Z5 changed lot desgin, Z5C thicker than Z3C, still using S810 is overheats while benchmark, gaming because peoples lost interest after seen the reviews.
    Then the XZ and X Compact slightly more attractive because 2.5D desgin glass is beautiful smooth shape reminds me Xperia Arc S, slowly going grow sales compared to year’s Z5.
    I skipping year, because I’m waiting S830 (Andreo 540, yes better graphics gaming, but OpenGL ES going using 3.2 or somewhere)
    And yes I’m Xperia Z and SP user. (SP didn’t have a 4.4 due to Snapdragon S4 Pro chip, then i buy a used Z Snapdragon 800 chip to have a 4.4 kitkat)

  • Spontex

    “Q3 16” is since when to when, please ?

  • Malcolm

    July to September, of course.

  • iia3ezu

    Unfortunate, but not unexpected.

    Overpriced, underspecced, and shoddy, bloated software.

    And limited availability around the world.

    If this is the way Sony wants to conduct its mobile business, then that’s the way it is.

  • HAWX

    I think Sony should increase the prices 3 or 4 times and 10 times for limited edition version of flagships. Because there is no advantage of getting ANY Sony phone right now in this super competitive market. (except lenyard hole which few people use it). In this way rich people fashion designers and collectors may buy it Sony can return in to profit.

  • Karenbdennis3

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  • Ryuzaki Raiga

    i’m still using Xperia L. although bad camera but i’m not media social person, didn’t care about camera performance and this phone got rebate back in 2013

  • theskig

    I just wonder when the production of old models stops. Is Z5 still produced? And X Performance? New model swipes the old one?
    And I wonder if they still produce the Z3 at a low cost how this estimate will change…

  • theskig

    I agree with you, Z2 and Z3 were the best Xperia phones.
    And about image quality I have tons of picture taken with my sold Z2 and I compared them with XZ review shots and I think in general Z2 was better: I’m curious about a test between them.

  • theskig

    You forgot to mention that starting from “X” series they removed some features (FM radio, microSD on dual SIM, answering machine).
    There’s no reason to buy a new Xperia instead of a Z5.

  • theskig

    I agree. I also have a Z5 Premium Dual since january and when it will die I think I’ll buy another one.

  • Emil Oskarsson

    Still, for me the x performance is better then the Galaxy s7 and g5… When it comes to user experience :) Camera is on par I would say :)

  • Emil Oskarsson

    Bloated software? I don’t have more then like 3-4 apps I would call bloatware in my x performance :) Underspecced? Yeah the lack of 1 GB of ram compared to similar phones is something you won’t notice thanks to the awesome Xperia software. I might agree they are a bit expensive but you do get awesome support :)

  • Emil Oskarsson

    Lenyard hole was removed in the x series though :p

  • LocalPatriot

    When will we get the official XZ wallpapers?

  • Makiz

    I still have the Z2, I’m in love with this phone and even the XZ (I played with it yesterday) isn’t a worthy update for me.

  • azzido

    They are not going to lose me until they listen to the customers, hence also listen to me.

    I am hapy XZ user and yes its great slick design reminds me great Arc S era. Iwonder why they do not market the display of XZ, it is a huge improvement over the regular Z5 mostly due to higher brightness and very high contrast ratio, colors and blacks looks better as well.

    I hope they will continue with mobile division. I was saying it many times months ago: decision to discontinue Z series was a disaster, as I predicted X series did not sell well. Fortunately they are back with much better XZ, which sadly has no support with advertisnment as there is not much budget for it. Still it is very good device and in my opinion the best Z so far. Some of the software lackings can be fixed as long it is related to soft. + we get really great goodies for preorder this time (headphones or smart watch 3).

    If someone from Sony listen to it I will repeat: with the business strategy they need to focus on premium devices only, have 3 size variants available each year, premium quality only. No more mid rangers or low phonea. There is no market for Sony any longer in this sector. Also less number of devices = less phones to suport with software / better software / quality for Z series.

    Instead of low and mid sectors they should try to find new market in devices lime calm shell with Android. I am still not able to find proper replacement for great W980. In terms of desig it was a perfect calm shell device. I would like to have such a phone next tk my XZ as a support, with 1 or maybe 2 week battery life etc. Sleek, elegant with good specs and features.

    Sony is winning with design, was with battery life (need to get back with it), and now trying better with camera (XZ). Need to focus on these attributes, pack the top specs and advertise it.

    I think they should even consider to take a credit in order to be able to advertise it. For example XZ looks and feels much better in real than on the graphics.

  • azzido

    XZ is not overpriced. It keeps the same price as it was with Z5, X performance and previous Zs I guess. + now we get a very well goodies for pre orders (paying full price), still software is better than touch wiz and S7 / edge was much more expensive than XZ when it came to the market. In my country S7 edge is still more expensive than XZ so please stop with this overpriced bull… Yeah I know we are missing 1GB of RAM, but that’s it.

  • azzido

    See, the market is changing. What I can see is people are changing the devices less frequently because the processors, specs etc are so strong nowadays that you do not feel that much of a boost with new device. Hence Sony needs to adopt to it by releasing devices once a year instead of twice. It means more time for designers, more time for devs and QA to deliver better soft, also bigger difference in specs. It also means less money required to advertise smaller number of devices. More happy users as their device will be flagship longer.

    See, everyone wants to spend the money well, so there is no room for mistakes (Note 7as a reference). More time means better product and software. Simple.

    You want cheaper Z phone? Buy previous, last year Z and that’s it. Maybe Sony should keep selling previus ones as well, and suport it bit longer. If it works for Apple why not for Sony?.

  • Vinny Conforto

    X Performance, X, XA, XZ, X Compact… everything is NOT attractive. That’s why.

  • ymytbb .

    I often check youtube. Famous youtubers never review Xperia phones now… They are being forgotten. Actually, I don’t see any good phones after Z3 Compact. Sony Mobile is doomed

  • Phil Gym

    totally agreed. I love Sony, but I wish Galaxy S7 was the XZ. It’s arguably the best phone of 2016. If it had SONY logo in the back, I would love to get it…

  • Phil Gym

    we’ll see

  • jamie evans

    I would like to get S7 too to be honest. The blue one looks perfect. Wake up, Sony. Xperia is wack right now.

  • jamie evans

    true

  • jamie evans

    Sony mobile has lost its way since the Z3 Compact

  • Emil Oskarsson

    I have been thinking about it too but in the end the release of two flagships a year is likely due to the Japanese market where they are used to get new devices on the market every 6 months :p I did use my Xperia z for three years and it is still working, although I replaced it this summer with Xperia x Performance :p

  • Raj Singh

    No surprise. Despite making awesome stuff, Sony has no idea how to sell or market their products.

  • Ami

    Completely agree. I’ve had Xperia Z2 since May 2014 as soon as it went to our market. It’s been a gorgeous phone and probably the best I’ve ever had. I upgraded to Xperia Z5 Premium though because of the size 2 months ago, and it is IMHO the only one phone which can match Z2’s design language.

  • Vjekoslav Andric

    Yup, no XZ and X Compact.
    But XZ seems to be selking quite well. Q4 will be better.
    As long as they remain profitable were ok.

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  • Chaturanaga Manchanayake

    That’s why I never change my Z3 cause it is an amazing phone. I wish they will wake up from this nightmare and give us a good flagship device. I am honestly disappointed.
    1st they screwed up the battery by decreasing the capacity, then screwed up the stamina.
    I wish they drop this 23MP BS and go with bigger pixels 16MP sensor like what they’re doing with a7Sii.

    My Z3 is blazing fast, great ram management, great battery life. Perfect flagship. Year 2016 is a big fail :(

  • Chaturanaga Manchanayake

    +1 I am waiting for 2017 CES, Hope they bring something nice.

  • marcyff2

    really both the biggest reviewers of youtube reviewed xz

  • Geese Howard

    Don’t worry, Sony will live. The point is will they live a life of being delusional or a life that will change. I see good things with XZ and Compact, not so much with the previous X’s…

  • Kim

    Did you ever try the X-series?

    I recently bough X-series to replace my Z3C. I think X is really awesome and deserves better review and better sales. Main points:

    – 2 day battery life (like Z3C) and very limited idle battery drain.
    – Beautiful clean minimalistic design with perfect finish (metal, 2½D glass)
    – Brilliant HD screen with good size (5″)
    – Very quick and reliable fingerprint scanner. Works also with bank apps for security.
    – Faster and better camera
    – 32 GB storage
    – 3 GB RAM (plenty for my usage)
    – PS4 remote play (works much more fluent on X compared to Z3C – probably WIFI issue)
    – Intelligent battery charging according your charging patterns
    – Simplified and really fast UI that will be updated to Nougat 7.0 soon.
    – Waterproof (according youtube test, but not warranted).

    If the new 7.0 update includes manual shutter speed I couldn’t be happier…

    I have absolutely no clue why it got so different reviews (some good, but many where really bad). It seems most reviewers are focusing on stupid details with little real value (micronoise in pictures if you zoom 10x, only SD650 although the phone is really fast, not UHD/2K screen etc.).

  • Christian Hell

    Its really sad but obvious, the Xperia line has been getting worst since the kill of Z, from the aesthetic, marketing and even craft and specs the whole range became average and more midrange for the price they have. With no real technological evolution.

    I write this from my Xperia z5, awesome device at its time, and prevoiously owned a Z1 and Z3… now more curious on the Galaxy S8 than any Xperia. Sad

  • fried_egg

    The premium market is large enough for Sony to win more volume.. it is after all the only space Apple play in and they shift huge numbers… Now Sony have started to leave the low value space to the Chinese brands that is a good thing at not having the bad image of a “too expensive for what it is” phone that then brings down the “brand” as a whole. Sony means pricey and quality… it can’t have that image if it also sells “cheap and a bit disappointing” and easily badly compared to the Chinese flagships at the same price. L’Oreal only sell premium (Garnier is their mass market brand) Sony need to remember their past… you aspired to own a Sony – it was something that meant you had made it, you could afford it.

  • Mars

    Who are these 2 youtube reviewers ?

  • Sridu

    What next. Single digit in 2017/18. Zero marketting and poor pricing. Great job sony. I feel we sony fans should do a crowd funding to buy the mobile division of sony. I’m sure we can do much better☺

  • Zayed Kotayba

    Yes, They should produce only premium phones and three size variant because after all the only people buying their product is the long time SONY fans and as for me I never bought any mid range phone from sony just high-end products and I don’t know anyone that want to buy sony products (may be trying one phone and then move to other brand and I think this is why sony never have steady increasing on their sales)

  • Amir

    Z2 was the last decent xperia flag device. No surprise here. Xperia flags since then is like a making a big yawn. Sad but true.

  • azzido

    XZ is awesome!

  • azzido

    I wonder why they did not used the Note 7 flop to offer decent big screen device and get some market… Seems they missed the chance as there was no Sony reaction to this :/

  • Vinny Conforto

    I think Z3 Compact helped boost the sales in 2014

  • Vinny Conforto

    not really

  • Little Man

    That phone did have a significant importance in the market even until this day.

  • johala02

    The latest Xperia XZ and also the Xperia X Compact seems to get good reviews in general.
    (Even Android Authority liked the XZ)

    So if they make phones like that in the future I am not to worried.
    Sony can also release som low or midrange devices to. But I guess a good lesson will be try to avoid confusing models like Xperia Performance.

  • marcyff2

    Marques Brownlee and android authority.

  • Dorahkrause

    Google is paying 97$ per hour! Work for few hours and have longer with friends & family! !ht331f:
    On tuesday I got a great new Land Rover Range Rover from having earned $8752 this last four weeks.. Its the most-financialy rewarding I’ve had.. It sounds unbelievable but you wont forgive yourself if you don’t check it
    !ht331f:
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  • Mars

    Can you please link me to the Marques Brownlee Xperia XZ review ? I can’t find it on his channel …

  • Darni187

    Well since the Z2 and Z3 this new ZX will be a Sony Legend phone.. I’ve been waiting for the right Sony device and this is the best Sony phone in 2 years.. It’s a thing of beauty a work of art.. . I got got this phone today and it feels great.. I know this will sell well, let’s see the sales of Q4 of 2016 next year..

  • marcyff2

    I can’t find it either now. But i was sure i saw it. maybe i am wrong

  • mizik

    Agree. My disappointment with X series has led me to buy s7 edge. Now I am a happy Samsung user.

  • Abheet Nagar

    What I think being an Indian citizen is that they should work on providing a variety of smartphones. Like what they were doing uptill z3+. When I visit Sony showrooms other than my preferred one I see them like lifeless boring and deserted places. There are just 3-4 sets and no one wants to buy them because they are too expensive and still has flaws. For example take M4 aqua, XA, etc.

  • Abheet Nagar

    If only they could just adopt their old but really inspiring designs like the Z2 and could make their phones reliable

  • Abheet Nagar

    Yes z3 compact was a legendary phone

  • Moisés

    Here, lot of people would like to have a Xperia. But they complain about the price.
    I paid US$ 550 for my z3+, 1 year later it was released. I love the phone, no cam issues.
    I do not deny I was in love with Z5 Premium Chrome . But I could not pay US$ 1450,00.
    Now we find z5 for the same price I paid for my z3+.

    In my opinion Sony should have 5 devices yearly.

    Make a XE (4.7″ HD, 2800 mAh, 13mp/8mp, Mediatek or 4xx Snapdragon).
    A XC with 6″ Full HD , 5000 mAh, 16mp/16mp, Snapdragon 62X series)

    X Compact 2, Xz 2 and Xz Premium .
    All Snapdragon 835, 6gb ram, 64 or 128 gb.. Displays 4,5 HD; 5,0 Full HD and 5,5 UHD.
    2700mAh, 3200 mAh and 4000 mAh.

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