You thought this year was bad: Sony predicts $2.1B loss in fiscal 2015

[Ironman273]

You thought this year was bad: Sony predicts $2.1B loss in fiscal 2015
If forecast holds, Sony will have lost over $12B in just eight years.

by Cyrus Farivar - Sept 17 2014, 2:05pm EDT
 

Sony's Xperia Z.

This fiscal year, Sony announced that it lost over $1.2 billion. According to revised forecasting, the company is on pace to lose nearly double that figure by the end of the following fiscal year, largely due to lackluster sales of its mobile phones.
 
According to a new document released by the Japanese corporate giant on Wednesday, the company will lose $2.1 billion during the fiscal year ending March 31, 2015.

 

During the 2013 fiscal year, Sony managed to profit $435 million, its first profit in years. Overall, the company has missed profits in six of the last seven years. If the upcoming $2.1 billion in net losses prediction proves to be correct, Sony will have sustained over $12 billion in losses in eight years.

 

"We had to make changes of our midterm management plan given big changes and severe competition in the market," Sony CEO Kazuo Hirai told reporters in Tokyo on Wednesday, noting that the company would also cut about 15 percent of its workforce in the mobile unit.

 

"We had to make changes in our strategy. We will concentrate our management resources on countries and regions where we can expect high profit and will review our strategy if we see low profit and growth in certain regions or countries," Hirai said.

 

In November 2012, Moody?s downgraded Sony?s long-term debt rating from Baa2 to Baa3, one notch above junk status. That marked the second time in a month Sony was hit with a downgrade. In January 2014, Moody?s pushed Sony?s rating over the edge to Ba1?or junk status.

 

Source: Ars Technica

[Raa]

So where does all the money come from?

[spaceelf]

So where does all the money come from?

Where does it all GO?

 

I'm kinda curious, but I'm sure I don't actually care.  :laugh:

[Ironman273]

Where does it all GO?

 

I'm kinda curious, but I'm sure I don't actually care.  :laugh:

It seems like most of it is from their mobile division so they're spending money to develop and manufacture phones that no one is buying.

[vcfan]

So where does all the money come from?

 

selling insurance

 

Although Sony sells hundreds of products as varied as batteries and head-mounted 3-D displays, it so happens that Sony?s most successful business is selling insurance. While it doesn?t run this business in the United States or Europe, Sony makes a lot of money writing life, auto and medical policies in Japan.

Its financial arm accounts for 63 percent of Sony?s total operating profit last year. Life insurance has been its biggest moneymaker over the last decade, earning the company 933 billion yen ($9.07 billion) in operating profit in the 10 years that ended in March.

http://www.nytimes.com/2013/05/28/business/global/sonys-bread-and-butter-its-not-electronics.html?pagewanted=all&_r=0

[BajiRav]

Sony must sell the Xbox PlayStation division to cut their lossess...

 

/s

[freelife2014]

I am curious where it all goes.:-)

[+Audioboxer Subscriber²]

I am curious where it all goes.:-)

 

Wasted on TVs and phones. As I said on the front page article, pumping out premium phones every 6 months for Sony is not working, they need to stop it. One a year, or maybe even team up with Google for the next Nexus (after this one Motorola seem to be doing).

 

In regards to TVs, too expensive, and too many models again.

[Ironman273]

In regards to TVs, too expensive, and too many models again.

And the fact that they don't control the process like they used to.  In the Trinitron days they made the tube and sold it to rebrand besides selling their own TVs.  Now they have to source their panels from others and have made deals with different manufacturers that never seem to pan out.

[+Audioboxer Subscriber²]

And the fact that they don't control the process like they used to.  In the Trinitron days they made the tube and sold it to rebrand besides selling their own TVs.  Now they have to source their panels from others and have made deals with different manufacturers that never seem to pan out.

 

I'd honestly never buy a Sony TV again. I had one before and it was great, but new sets are just stupidly priced compared to competition. That and I wanted a Plasma. Panasonic <3 Although even they are dropping their Plasma's now :(

 

LG makes decent Plasmas at great prices.

[123456789A]

 

selling insurance

 

 

You mean those extended warranties or actual insurance?

[+Audioboxer Subscriber²]

You mean those extended warranties or actual insurance?

 

Actual insurance in Japan. Like life insurance.

[Guest]

You mean those extended warranties or actual insurance?

 

The stuff that you get by being a resident in a decently-run country.

Actual insurance in Japan. Like life insurance.

 

Why does that stuff sell anyways? It is not like you are going to be any safe if you sign a piece of paper.

[+Audioboxer Subscriber²]

The stuff that you get by being a resident in a decently-run country.

 

Why does that stuff sell anyways? It is not like you are going to be any safe if you sign a piece of paper.

 

You do know how life insurance works?

 

It's about payouts (lump sums) in the event of your death to support family/friends.

[SecretAgentMan]

Sony is very lucky that Microsoft fumbled their console launch.

[Guest]

You do know how life insurance works?

 

It's about payouts (lump sums) in the event of your death to support family/friends.

 

I do know. It doesn't make it less stupid.

 

"I want to place a bet. 100 EUR that nothing bad will happen in the next 5 years."

"We accept your bet. If you win, you don't get anything. If you lose, we will give your sister 100,000 EUR."

[+Audioboxer Subscriber²]

I do know. It doesn't make it less stupid.

 

"I want to place a bet. 100 EUR that nothing bad will happen in the next 5 years."

"We accept your bet. If you win, you don't get anything. If you lose, we will give your sister 100,000 EUR."

 

Well that's pretty much how any insurance works lol. Like pet insurance or home insurance (although I think legally in the UK you require home insurance). Same with car insurance, it's a legal requirement.