Things seem to be looking rather slow for Sony. We hate to say this but Q1 2018 results are not favorable for the company. The brand just shared first quarter results for this year. Compared to 3.4 million units sold last year during the same period, Sony only sold two million (2M)–the lowest yet for Sony, at least, in the same quarter. We’re curious if it will ever reach the ten million target for this year. Actually, the number has been lowered to 9 million now.
Competition in the mobile game is tough especially in Japan and Europe. We know Sony has been having challenges when it comes to mobile business but we were reminded why it’s a name to be reckoned with after all the “firsts” and the innovations it has introduced in the mobile game. However, Sony Mobile is set to close in Turkey, Africa, and Europe by October.
Business is still thriving but Sony phones are not improving fast enough. There are several new models in the lineup that we’re hoping will help pull up numbers for the rest of the year. There’s the Sony Xperia XZ2 Premium now on Amazon and Best Buy and the upcoming Xperia XZ3. The brand also has other interesting phones in its current lineup like the Sony Xperia XA2 Plus, Xperia XZ2, Xperia XZ2 Compact, and the Sony Xperia XA1.
We can’t see how else Sony will make more money. It just needs to sell. Marketing is key for success and business growth but to be honest, Sony isn’t doing anything special. We understand because doing so would mean spending more money.
The information below shows sales and operating income, Q1 FY2018 (year-on-year) and FY2018 Forecast.
There is a significant decrease in sales (27%) in smartphone sales in Japan and Europe–two of its main markets. Operating income is also down as a result.
The forecast is being lowered by 5% because of the significant decrease in smartphone unit sales plus the negative impact of foreign exchange rates. Expect further reductions in operating costs as Sony struggles.
We’re not really worried about Sony. Q1 sales are usually lower because that’s after the holidays. Even Samsung experienced sluggish growth amidst disappointing S9 sales. We’re hoping Q2 and Q3 numbers will be better though.
Is it time for Sony to bow out of the business? No, not yet. Perhaps watch the business carefully this time again and look at 2018 as a make-or-break year as in 2016. What do you think?
VIA: XPERIA Blog
