Sony has confirmed plans to sell off its PC business in order to focus more on smartphones and tablets. The company aims to reach a definitive agreement by the end March to sell the business to Japan Industrial Partners, which will scale back the PC activities to focus on the Japanese market.
In addition, Sony plans to refocus its TV business on the high end of the market, especially new 4K sets, in order to turn the activities profitable by the fiscal year to March 2015, a year later than previously expected. The above measures, as well as a target for a 20 percent reduction in manufacturing and production costs, will lead to a loss of around 5,000 jobs at the group as well as a net loss in the current year on restructuring charges and asset writedowns.
The company now expects a net loss of JPY 110 billion in the year to March, versus a forecast in October for a proft of JPY 30 billion. The outlook for operating profit was cut to JPY 80 billion from JPY 170 billion, while the sales forecast was maintained at JPY 7.700 trillion.
In the December quarter, Sony still posted a net profit of JPY 27.0 billion, reversing a loss of JPY 10.8 billion in the year-earlier period. Revenues jumped 23.9 percent to JPY 2.413 trillion, due mainly to positive forex effects, as well as the new Playstation and stronger smartphone sales. Excluding currency effects, revenues rose 5 percent. Operating profit doubled year-on-year to JPY 90.3 billion, helpedby reduced losses in the TV business and better results in gaming and financial services.
The Mobile Products division, which incldues PCs and smartphones, was still in the red, with an operating loss of JPY 12.6 billion versus a loss of 21.3 billion a year ago. This included an impairment charge of JPY 8.2 billion on the PC business. Revenues at the division were up 44.8 percent, or 18.8 percent excluding currency effects, to JPY 461.5 billion, driven by higher smartphones sales and an increase in phone prices, offset by lower unit sales of PCs.
Sony sold 10.7 million smartphones in the quarter, up from 8.7 million a year ago and 10.0 million in the September quarter. However, the company cut its outlook for full-year sales, to 40.0 million units from an outlook in October of 42.0 million.
