Sony flagged the review already in its last quarterly report and the impairment charge results in a downgrade in its full-year earnings outlook. The company now expects to report an operating loss of JPY 40 billion for the year to March 2015, versus a previous estimate of a profit of JPY 130 billion and a reported result last year of JPY 23.7 billion. With the annual net loss now estimated at JPY 230 billion, Sony said it will not pay an interim or final dividend for the year.
For the mobile business, the company plans to focus more on the premium segment and said it will reduce the number of mid-range models it offers. It will also revise its strategy in certain geographic markets, Sony said, without providing further details. The new strategy reflects "the significant change in the market and competitive environment of the mobile business," Sony said.
At its Q1 report in July, Sony lowered its outlook for full-year smartphone sales due to weakness in the mid-range market, saying growth in emerging markets was not as strong as expected. Its current forecast is to sell 43 million smartphones this year, versus a forecast of 50 million in May. In Q1, unit sales declined to 9.4 million from 9.6 million a year earlier.
