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Sony To Cut Smartphone Sales Target

Sony To Cut Smartphone Sales TargetThe Wall Street Journal has reported people familiar with the matter as stating Sony is likely to lower its target by several millions of units from a current goal of 43 million units for the 12 months to the end of March 2015.

Sony has already lowered its target once this financial year, in July cutting its forecast from 50 million to 43 million units.

At the time, Sony reported a downward revision in unit sales of mid-range smartphones which had been expected to significantly grow, mainly in emerging market countries.

The WSJ has reported the planned move derives from Sony’s plan to reduce its presence in some markets, especially emerging nations such as China, by pulling its entry-level handsets.

According to research firm Canalys, mainland China accounted for 37% of all global smartphone shipments in the 2014 second quarter, with local vendors dominating sales.

Canalys found eight out of the top 10 vendors were local companies, with global heavyweights Samsung and Apple the only international entrants in the top 10.

Sony last month advised it will record an impairment charge of approximately 180 billion yen (around $1.91 billion) in its mobile communications segment, forecasting a net loss of 230 billion yen (around $2.44 billion) for the fiscal year ending March 2015.

Sony’s 2014 quarter two earnings announcement is scheduled for October 31st.