Pavel Alpeyev and Grace Huang Tokyo
SONY might cut its annual sales target for smartphones for the second time this year, said a person familiar with the matter.
The revision might be announced when Sony releases second-quarter earnings on October 31, the person said, asking not to be identified because the information is private. The maker of Xperia devices said in July it expected to sell 43 million units in the 12 months to March, lowering an earlier projection of 50 million smartphones.
Sony last month widened its annual loss forecast, citing a ¥180 billion (R18.5bn) charge in the smartphone business. Chief executive Kazuo Hirai’s challenge was highlighted when Samsung Electronics, the biggest producer, this month posted a slump in earnings, citing competition from lower-priced rivals.
Sony was passed in smartphone sales by Chinese makers including Huawei Technologies, Lenovo Group and Xiaomi that offer feature-packed devices for as low as $100 (R1 100).
Hirai acknowledged the increased competition at a briefing on September 17, when the company increased its full-year loss outlook to ¥230bn and said it would not pay an annual dividend for the first time since its 1958 listing.
Mami Imada, a Sony spokeswoman, declined to comment on the company’s smartphone forecast. – Bloomberg