Japanese consumer electronics manufacturer Sony has announced a forecast annual loss of 230bn yen (£1.3bn), having previously estimated losses of 50bn yen.
The increased total is being attributed to a reassessment of the company’s mobile communications performance amid fierce competition from rivals such as Apple and Samsung.
According to Sony’s statement, the previous mid-range plan (MRP) was ‘focused principally on achieving significant sales growth’. The updated MRP was modified ‘to address the significant change in the market and competitive environment of the mobile business. Under the new MRP, the overarching strategy for the mobile communication (MC) segment has been revised to reduce risk and volatility, and to deliver more stable profits. This revision includes changing the strategy of the MC segment in certain geographical areas, concentrating on its premium lineup, and reducing the number of models in its mid-range lineup’.
Earlier this year, Sony sold off its Vaio computer business and span off the Bravia TV division as a separate subsidiary as part of cost saving and restructuring measures.