Sony has trimmed a number of its mid-term targets, for its mobile and components activities, while forecasting a stronger performance from the Playstation business. Following a corporate strategy meeting on its outlook to March 2018, the company said it still targets an annual operating profit over JPY 500 billion and a return on equity of at least 10 percent by the end of the three-year plan first announced in February.
The Game and Network Services segment will be the biggest growth driver of its mid-range plan, building on the over 40 million Playstation 4 consoles sold and the upcoming launch of a PlayStation virtual reality system in October. Sony raised its target for sales from the division to JPY 1.8-1.9 trillion in the fiscal year to March 2018, from a previous estimate of JPY 1.4-1.6 trillion, and the operating margin target to 8-10 percent from 5-6 percent.
Sony also expects growth from its Pictures and Music divisions, but has significantly downgraded its hopes for the camera components segment, due to the slowdown in the smartphone market. The Devices segment is now expected to achieve sales of JPY 1.00-1.05 trillion and an operating margin of 5-7 percent in the year to March 2018, compared to a previous forecast of JPY 1.3-1.5 trillion in sales and a margin of 10-12 percent.
Sony also cut the outlook again for its own smartphone unit. The Mobile Communication segment is projected to reach sales of JPY 0.90-1.05 trillion and a margin of 1.5-3.5 percent in the year to March 2018, less than Sony'earlier target of JPY 1.00-1.25 trillion in sales and a margin of 3-5 percent.
