Linked by Thom Holwerda on Thu 1st Aug 2013 09:00 UTC
PDAs, Cellphones, Wireless Like LG, Sony's smartphone division is now also doing quite well:

In the three months between April and June of this year, Sony saw both a "significant increase in unit sales" of its Android smartphones and an improved average selling price per handset. That's at the heart of the company's improved profitability.

The common parlance that only Samsung is profiting off Android is, as I've said before, simply no longer true. All it took for companies like LG and Sony to become profitable with Android is to, you know, stop making crap phones, and start producing good ones.

Shocker.

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RE[6]: Quite Well
by tanzam75 on Thu 1st Aug 2013 18:45 UTC in reply to "RE[5]: Quite Well"
tanzam75
Member since:
2011-05-19

Then read again. Here is an indicator: "This significant improvement was primarily due to the above-mentioned increase in sales of smartphones."


Yes, that is Sony's spin on the news. The numbers, however, say something quite different.

From Slide 3 of Sony's quarterly results presentation:
http://www.sony.net/SonyInfo/IR/financial/fr/13q1_sonypre.pdf

Mobile Products & Communications (MP&C)
Sales: 389.0 billion yen
Operating income: 5.9 billion yen
FX impact: +62.4 billion yen

Notice that "FX impact" was over 10 times the operating income. In other words, if the yen had not dropped 20% against other world currencies, Sony would have turned in an operating loss of 56.5 billion yen in the mobile division.

Would you consider a profit margin of -14.5% to be "doing quite well?"

Note: The MP&C division at Sony also includes personal computers.

Edited 2013-08-01 18:46 UTC

Reply Parent Score: 3

RE[7]: Quite Well
by chithanh on Thu 1st Aug 2013 23:15 in reply to "RE[6]: Quite Well"
chithanh Member since:
2006-06-18

That something is labeled as "FX impact" doesn't mean that it is somehow unexpected or unpredictable, or that it is totally independent of the other listed items.

Note: The MP&C division at Sony also includes personal computers.

Yes, and as various others have already noted, it is much more plausible that the smartphones hide losses in the PC department than vice versa.

Reply Parent Score: 2

RE[8]: Quite Well
by jared_wilkes on Fri 2nd Aug 2013 01:49 in reply to "RE[7]: Quite Well"
jared_wilkes Member since:
2011-04-25

"That something is labeled as "FX impact" doesn't mean that it is somehow unexpected or unpredictable, or that it is totally independent of the other listed items."

It does mean it is completely unrelated to how Sony as a business or any of its products are performing.

Think about that. Uncontrollable, sometimes random, global economic effects were more beneficial to Sony's business this quarter than anything they tried to control.

Reply Parent Score: 3

RE[7]: Quite Well
by cdude on Fri 2nd Aug 2013 16:53 in reply to "RE[6]: Quite Well"
cdude Member since:
2008-09-21

Would you consider a profit margin of -14.5% to be "doing quite well?"

Yes, profits are good, loses not. That it always can be more profits isn't any argument, its a shared agenda that applies as well to Samsung and Apple, always.

Sony grows, makes profits in a highly competative market, in an increasing important market. They reentered late, got there acts together and already passed the likes of Nokia and actually make PROFIT while continue to grow. That's what I name healthy, a perspective, something to build up on, a future.

Edited 2013-08-02 16:56 UTC

Reply Parent Score: 1