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| Sony smartphone sales are not promising |
Sony released its financial results for the first quarter of 2020. The Japanese technology giant said operating profit fell 57% from January to March from 35.45 billion yen (331 million yen) to 82.73 billion yen in the same period last year. American dollar). the previous.
Sony attributed the decline in operating profits to a decline in consumer electronics demand due to the Corona virus epidemic. Because of the restrictions imposed on the spread of the virus, the Japanese company was forced to suspend production in some industrial facilities in certain countries.
Sony expects operating income this year to drop 30% to its lowest level in four years. Although the company's gaming activities continue well, image sensor activity may be affected by a sharp drop in demand for high-end mobile phones this year.
Between January 2020 and March 2020, Sony shipped only 400,000 Xperia smartphones. This is the lowest number in the recent past, especially in the first quarter. Deliveries decreased by 64% compared to the same period last year. The biggest decrease in this category.
Although the company's goal is to sell 700,000 smartphones, production has stalled due to weak demand and global epidemics where the goal has not been met. This was the last positive annual growth for the company in the Xperia category in the second quarter of 2017.
The report shows that Sony successfully sold 3.2 million mobile phones (Xperia) in 2019, while it sold 6.5 million mobile phones in 2018, which means that mobile phone sales have continued to decline sharply in the past three years, and that companies need new companies. The best performance proposition is to stay on the market.
The company confirmed that the smartphone factories in China and Thailand are working properly. However, some suppliers in Malaysia and the Philippines face delays, which in turn may slow some of their future products.
If the company's latest mobile phones (such as Xperia 1 II and Xperia 10 II) were expected to hit the market in June and not attract consumers, Sony may need to rethink their smart phone strategy.