Sony Mobile trims full year unit forecasts; reports loss for Q2 FY2017

by XB on 31st October 2017

in News

Sony Corporation reported its fiscal Q2 FY2017 financial results earlier today. At the Group level, Sony is on the right track, reporting a revenue increase of 22% to 2,063 billion yen, with operating income of 204 billion yen – approximately 4.4 times higher than the same quarter last year. This led to Sony upping its overall forecasts for the full year, thanks to a good performance from its Semiconductors, Music, and Home Entertainment & Sound (HE&S) businesses.

All divisions reported a profit in Sony’s second quarter, apart from its mobile business. Mobile sales during the quarter were down by 3% on a constant currency basis, with an operating loss of 2.5 billion yen. Sony attributed this loss due to a change in the geographic mix of smartphone sales and an increase in the price of key components.

Sony shipped 3.4 million Xperia units during the quarter, which is broadly in line with the same quarter last year. This performance was clearly not in line with Sony’s own expectations though, as it has lowered its full year unit forecast from 16.5 million units to 15.5 million units. Despite lower shipments, Sony still expects to maintain operating income of 5 billion yen for the full year through a further reduction in operating costs.

Thanks Diogo and Nikhil!

  • The problem was that XZP was announced in February and only available at the markets by june. That was the problem. And the same will happen in the next year :/
    I love Sony, i really do. And i´quite sure they could be the Apple on Android, just because they have experience in all areas. They could involve more PlayStation on the Xperia brand, and make a powerful gaming phone. The knolowge of Bravia, with, pherpahs, a screen with acoustic surface, and Aplha series. But camera department is what it is! Music it´s the only division that put effors on Xperia brand, with the introdution of LDAC with the Xperia Z3.
    Let´s hope that the Mirai desing expected next year, is true.

  • Drelkag

    Well this is disappointing =/ I hope they recover next quarter.

  • Gerhard Ba

    I have totally lost track of Sony Xperia devices, since they stopped counting up the numbers. Z3,Z4,Z5 ..that was so easy. Then came X, XZ, XZ1…!???
    People ask me which I recommend and I tell them, I have no clue. And I bet I’m not the only one.
    Anyway, agree. Who needs 4K on a 5 inch screen XD

  • jokensy

    If they don’t trim down those bezels, they will keep losing money.

  • Francis Troy Fabrigas

    Hope for Mirai to change this.
    ‘Cause people’s logic nowadays is “What good is a phone when it’s got large bezel?”

  • Aiden M.

    Hmm.. I just read that Sony’s stocks were up by 346% or something just a little while ago. So I figured they were doing better than that. I understand why they do it but it would probably really benefit them to just release phones on a yearly schedule rather than 6 months. Sometimes it’s an edge but most of the time not. I’m loving my XZP though. It’s the best 600 bucks I’ve ever spent!

  • Utsav Shah

    Still rockin it!

  • Phil Gym

    I haven’t seen any Xperia phones that make me want to buy since the Z3 Compact. That mostly comes from uninspiring designs. iPhone X is out today, odds are against Sony Mobile. Slash the bezels lol

  • Warren Chang

    very different markets, XZs/XZ1 against XZ premium, one is a phablet 5.5″ the other is 5.2″, that’s like suggesting a s8 ( not plus) to buy a note 8, my 5.2″ XZs is big enough for me, i already carry a ps vita or 3ds xl and high resolution digital audio player nw-zx100, so i don’t want a phablet, cos i don’t use my phone for gaming or music

  • ZR

    Its because in Indonesia, Sony Mobile is stop sale because TKDN.
    Indonesia is a serious market for Sony.
    Until now, Sony Official is selling Xperia Z5 series. Thats sad.

    Coba Sony Indonesia bisa menyelesaikan permasalahan TKDN ini biar pecinta SONY bsa merasakan HP terbaru SONY

  • Itsarapong Intoum

    Is there something to be surprised ?

    It’s like SONY didn’t really try to make Xperia a good smartphone for end user.

  • Szabolcs Gärtner

    Because Sony isn’t Samsung, nor Apple, nor a Chinese manufacturer;
    they don’t have the marketing budgets and brand recognition of the former, whilst they can’t produce as cheaply as the latter.

    Which is sad, because their Android experience is the perfect mix of almost stock and worthwhile added apps, and their design language is my favourite among all the manufacturers (Which got copied by the likes of Huawei for a while).

    I hope they get ahead of the curve, but given how for most, there’s only Sansung and Apple, I doubt it.

    I’ll remain a customer though as long as they exist.

  • 3_nity

    Yeah, bad idea for Sony to leave us here.

  • Szabó Béla

    The 4K screen of the XZP, is just amazing, nothing less. I love watching 4K HDR content on it from amazon prime.

  • Szabó Béla

    Well ppl buy shit for fassion and to show off with it over buying it for being good useful and reilable.

  • memphis

    No! Q2 means the time from April to June. As far as I know, the XZ Premium wasn`t even released or only for a couple of days. So it doesn`t count here.

  • Subham Dey

    Q2 FY 2017 means july to september..Sony also shipped the same 3.4M unit during april-june
    XZ premium is flop no matter what!

  • memphis

    Q3 and Q4 are what times? When I divide a year through 4 I get 3. And that multiplied with two is six So how does it come that you get July to September? Where is my missunderstanding? I don’t get it

  • Ryuzaki Raiga

    first quarter is between april to june, 2nd quarter is july to september, 3rd quarter is october to december and 4rth quarter is january to march

  • Ryuzaki Raiga

    i’m agree with u, too many XZ is too mouthful to speak. why don’t make it simple. just release X1 as premium flagship and X1 compact as high end,
    follow buy XL1 indicating large screen high midrange and the X1s as midrange.
    the budget low end just called it R1/L1 whatever it this is

  • Ryuzaki Raiga

    next year they release a new design

  • Ryuzaki Raiga

    poor sony, how about xiaomi in indonesia? its good enough.

  • Ryuzaki Raiga

    JDI already announce a new 18:6 bezel like all the others

  • Orion X

    Hmmmm same amount of sales yet a loss . _.,I guess Those price hikes of components hurt them,I saw the same explanation given by LG,and they sold 13.4 million in q3 and still had a loss of $334 million. Well Here is hoping they adapt.And Maybe do a little bit of marketing. The reduction in r&d acts like a double edged sword sometimes.You might cut down costs and have consistent sales,but eventually Component prices and Rate exchange fluctuations will wipe that away.
    Since Sony is gonna be raking in a lot of cash Due to PS4 and other shit.I think They still will focus on mobile for the time being even though it’s a losing game for them anyway,the loss isn’t eye watering like LG’s or HTC ‘s red ink so I think they’ll be fine.I admire the commitment, just hope they learn to adapt abit faster.Mobile Market is a dog eat dog merciless market.

  • ZR

    Xiaomi is good and grow fast in indonesia because cheap n good spec.

  • Chaturanaga Manchanayake

    Everyone looks at my phone says, whoa that’s an amazing display.
    Now I really want Sony to get OLED 4K display on a Xperia device with a great design, Not this loop design. It’s getting old.

  • Rob Gillingwater

    Unfortunately I can’t see this improving as they are visibly lagging behind the competition and even the cheaper players (screen and to lesser extent camera) even though their software is excellent and clearly supporting the latest Android version. I have supported Sony (and Ericsson and Sony Ericsson) for many years also their headphones and speakers but even I am wavering.

  • Chaturanaga Manchanayake

    I think so, cause you know I’m from Sri Lanka and I wanted to buy XZ Premium but phone shops here didn’t have the device. They all offered me XZ. Then I had to get it down from China. I think I am the only person (AFAIK) who has this amazing device. Love the experience since it’s butter smooth and great battery life and latest android software, couldn’t ask for more.

    They seriously need to do more marketing, I mean I see full of YouTube videos of all the slow-mo stuff but they need to market more.
    And on top of that I don’t get why they don’t give full cameraAPI2. If they get camera software right that’s something they can boast at just like their ALPHA series.
    Specially when other OEMs/Apple supports 1080p 120/240fps 720p 120/240fps Sony only went with 720p 960fps.

  • Chaturanaga Manchanayake

    I totally agree with you. Whoever came up with the Xpieria X and Xperia X Performance should be shot dead. Why couldn’t they simply continue with Z6 etc.
    or maybe X is for under powered one. Sometimes they make these absurd decisions.

  • Chaturanaga Manchanayake

    Always late to the party man. But if they do it then they should do it right. Plus they really need to get the camera software right. Plus they should ditch this G glass and go with Zeiss or G Master lens.

  • The One

    We’ve been saying that since the Z series… I’ll believe it once I see it.

  • memphis

    OK now I got it.

  • S.H.U.R.O.

    The problem it’s not in 4K, but in the smartphone dimensions, and specifically, this huge bezels,for using it`s not comfortable. Another reason why the xperias are still badly sold, is the unfinished software on camera and no choice like tele photo or wide angle camera like on, huawei, samsung, apple, lg

  • kaostheory

    Availability, support, marketing and the removal of features is killing their sales. Premium is not premium enough. Bezels are the least of their problems. Trying to find something to replace my Z3 but starting to look elsewhere. Even with the bezels the XZ1 compact looks great except camera, no fm, and to a lesser extent audio is keeping me away. I’m hoping with the new revenue Sony starts to revamp their phone. Hoping on 2018. And while I’m ranting, do something with the horrible naming scheme!

  • Moisés

    JDI sells screen for other OEMs like Huawei, Htc, Xiaomi..

    Doubt Sony goes 18:9. It would ruin PS4 Remote Play and they do not want it.
    Mate 10 is 16:9 with more than 80% screen.

  • Moisés

    Wide angle lens sucks. Wish they used 27mm instead of 25 or 24.
    Things look too far and small.

  • Moisés

    There is regular slow mo. Not only the HD 960fps.

  • Richard Brutski

    The iPhone is hideous, and that camera tumor on the back is just that : cancer.

  • azzido

    I am not surprised considering they put ridiculous 2700mAh battery in regular XZ1 and same old design and old GUI… Then they had a bad comments due to abnormal distortion issue (now it is fixed). Even though their camera is still behind the competition no matter they expertise in dedicated camera market (then it is even more strange). For some unknown reasons they are very stubborn to incorporate features and functions people are begging for over and over again: OIS, better than F2.0 light, improved HDR (HDR+?) and focus on what people are mostly using camera for = taking pictures and definitely NOT dinosaurs. Why the hell there is no Radio in top models but mid/low ends still offer it??? So I am willing to pay more to get less? Last but not least marketing is too weak, but now they do not have more money to spend on advertising. They have talented IT people but I blame management that is not able to attract new clients and increase user base.

    What they are good at is service support and pricing for flagships (in comparison to competition).

    They need to finally understand that mobile market is only for the best devices only today. You need to excel in every aspect to survive. The list of things they must do to survive:

    1. Change the design completely, trim the bezels, but it does not need to be very minimalistic. All your devices looks same so people does not see the difference that much.
    2. Change stock UI as it is boring and people does not see the difference between your devices that much.
    3. Include new screen technology. 4K is fine but you need something else. It does not need to be Oled, jdi can have laser or other panels, you need to diffrentiate from competition.
    4. Improve camera.
    5. Include much bigger battery.
    6. Market device in different way that so far. This is too japanese for EU and US markets.
    7. Tighten collaboration with operators.
    8. Fingerprint scanner for US market?
    9. Develop new features / hardware solutions to be one step ahead from competition. Not only copy the solutions from others.
    10. Xperia Arc Premium? That would give you space for better camera as top and botyom back would be thicker than medium part.

  • ZR

    Mengeluarkan budget sampe 7 jt-an via online itu gak nyaman. takut ada apa2 dgn barangnya. nnti komplain susah.
    Mending yg offline aja.
    Pdhal yg online itu ada di warung xperia, bejibun; pilihan bnyak dri HP smpe accessories lengkap.

  • comme des garcons

    Actually I would get iphone x only if it was cheaper…

  • comme des garcons

    agreed. Most likely sony won’t change the hideous design

  • comme des garcons

    Sony must come up with a new design. That’s the only way out of this sticky situation. It might be too late though

  • Ini tokonya udah certified, bro..

    Ane aja beli LG V30 yg harganya 12.5jt aja lewat tokped kok.. Tapi sellernya ane ajak ketemuan dulu

  • ZerothGlacius

    Xperia X was a good phone, just way too overpriced. They had an option to start a mid-range flagship line with the X series, but they basically backed out and went back to the old C series and Z series with that “XZ and XA” crap.

    What they should have done is:

    Xperia X –> Replaces M series
    Xperia Z continues
    Xperia C gets an upgrade with a focus on camera

    But as it turns out, Xperia Z6 Lite (Yes, Xperia X was the Z6 Lite) was no better than the M5 in practice. That pretty much sealed the fate of Sony in 2016.

  • ZerothGlacius

    Hi faisal which phone are you using now? I remember you as the master of the shots with M5.

  • ZerothGlacius

    Xperia smartphones are good. Just that the Mediatek ones aren’t that good, Sony isn’t even developing the codebase for the XA series. It’s like putting a Sony code “wrapper” around a stock MTK ROM. It works but it just doesn’t feel Sony.

    And despite that, the mediatek Sony devices have the better cameras in the end.

    Don’t get me wrong, XA1 Plus is a brilliant device that’s worth every penny, but you can feel it using the device that it doesn’t feel like Sony made it. :)

  • ZerothGlacius

    There are only two brands in Android I trust for the overall design, durability and experience: Asus and Sony. I’ve tried them ALL over the years. Nothing beats these two brands in an overall sense.

    That being said, ever since the ZenFone 3 came out, using those Asus phones feels a lot like using a Sony phone.

    I’ll add an honorable mention for HTC, but they hardly release any models anymore, and I usually do not buy flagship models – so they are out of the picture most of the time.

  • I just bought LG V30 2 weeks ago, bruh..

    I sold my M5 about a year ago, then went on to use LG G4 for 8 months, after that LG V20 for 4 months before finally switching to LG V30

  • ZerothGlacius

    I see bro. I’ve not used an LG since the chocolate phone years ago. Though I heard the flagships are pretty good but software support isn’t quite up there.

    I just bought an XZ a week ago after having a hands on with the XA1 Plus which I felt was the first good mid-range phone from Sony after the M5. XZ is disappointing in terms of battery life but seems like an otherwise great phone.

    In the meantime I’ve used a few ZenFones and I have to give a lot of respect to Asus for making excellent devices at good price points. The ZenFone Zoom S is one of the best cameraphones around, and I would like to compare it to the old Nokia cameraphones with the Kreuznach camera lenses.

  • Ana Helušić

    I agree Z2 and Z3 were best Sony phones

  • deekbee

    I’m tempted to pick up a Z5 Premium purely for the screen.

  • miha kovac

    Hope Sony will stay in mobile business. I like Xperia phones very much and I dont know which brand to choose if Sony leave the market.

  • If i remember , Sony’s Loop design was introduced with XZ and Xc , which was last year . Even though it’s dated due OmniBalance influence , the concept idea of the XZ and Xc design wasn’t very old tho

  • But XA itself doesn’t only count C series . It also the M series before M5 as M5 upgraded itself from Mid-range series into Premium Standard series (yes , i’m talking about Xperia M4 Aqua . It was launched par with C Series , including C4 from the start of both series. M series was located for anyone who wants a mixture of Z series design at C series pricing and specs which made the M series confusing simultaneously) . The difference between XA (M) and XAU (C) was their height , front facing camera and LED flash , internal storage , battery , screen to body ratio , etc.)

  • But if i remember , Sony MWC’s flagship starting with X Performance , was introduced in MWC 2016 and it was launched 4 months after its introduction [i can’t remember what was the reason X Perf was launched way contrast with Z Series] . And it was returned with XZP with same case with XPerf , this time i don’t know it was SD835 launch time problem or just Sony releasing timeline of MWC flagship (except for Z3+ , although it was launched in June same as XZP and XPerf , it was introduced in May as they postponed) . Although i can’t put blame on Samsung on holding SD835 till March 2017 , it was really need a solution to launch date of Sony MWC flagships since XPerf . Well , at least April should be done . Hope next year will be fixed .

  • arcu de triumf

    Business as usual. They still can’t win the mobile sector, too many flaws and issues with high price. Can’t work that way. Something gotta change: the quality or the price. The banners with Xperia at Champions League matches doesn’t cover the flaws so…The design is pretty ok with a Z3 Compact the top of it so it’s not the issue, even though there could be some improvements here too. And the paradox with their camera which has many issues when they are one of the best lenses and cameras manufacturer. I hope they’ll keep the 4.6″ models and this design. I had SE k610i, Xperia U, Z3C now XC. Hope will get another Xperia after few years again. A flawless one.

  • Emil Oskarsson

    Nah xz premium takes that spot today :) Xperia z2 was better than the Xperia z3 imo :)

  • Chris

    They might sell more phones if they didn’t just completely blow off the US.

  • tazcubed

    My key grief with Sony is that their fingerprint reader doesn’t work on the XZ Premium in North America – unless you buy a non-native version (and without warranty) of the phone. I’m fine with almost everything, but get the speakers to work better, add a bit more RAM, get the screen to be a bit brighter and please launch the next flagship in red. I’ll buy it then.

  • Uzair Syed

    Most people will think this is crazy talk, but I think the real way SONY could differentiate their phones is to integrate PS so deeply into them, even if it means creating their own operating system. They could go all out and compete if they wanted to IMO, but the risk is obviously tremendous. Still, this mobile thing is clearly not working for them and they could use some real innovation IMO.

    I just want a PSP3 tbh (call it PSP-PS Phone with real buttons) but don’t make it a poor effort like the Xperia Play, Vita, and all of Sony Mobile Marketing.
    I honestly wouldn’t mind the width of something like the PSP Go if it means I could actually have good real games to play on my Phone. Even a niche success would be better than these losses year over year.

  • Chaturanaga Manchanayake

    Yea but X Performance not having 4K video and pricing was absurd.But I agree with your strategy. Hope Sony will improve in this next year onward.

  • dbjungle

    Sony is doing this to their selves. They need to 1, price phone to sell and 2, get over this premium only pride strategy of theirs. It’s funny they cancel the “premium standard” lines and start posting losses again. There’s no logical reason why every Sony phone should cost $700 on launch. Every non flagship Sony product skimps on something to prevent cannibalizing their other products. The result is there is never a product that meets all of your needs without being incredibly over priced. The past couple years I’ve been a generation (or 2) behind on all Sony products because this is the only way to buy them at a reasonable price.

  • nzone

    Atleast Sony as a whole does not make any losses anymore.

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