Sony has cut its sales and profit predictions for the year ahead, blaming the weak economy and changing foreign exchange rates.
For the first quarter to 30 June, the electronics manufacturer saw operating income fall sharply by 77.2% to $79m (£50.8m). Sales were up 1.4% to $19.18bn (£12.13bn), which the manufacturer said was due to the consolidation of Sony Mobile as a wholly-owned subsidiary.
Sony reported the success of its mobile business within its mobile products and communication division, which also includes PC sales. It made a loss of $356m (£228.9m), which Sony attributed to slumping PC sales and the acquisition costs for Sony Mobile. However, the addition of Sony Mobile to its business saw sales increase 132.9% to $3.62bn (£2.33bn).
The manufacturer said mobile sales increased 14% on a like for like basis, primarily due to an increase in the average selling price of smartphones and the success of its Xperia devices, such as the flagship Xperia S.
Looking ahead, Sony said it expected sales and profits of its handsets to grow on a like for like basis. However, the wider division will continue to suffer due to challenges in the PC market. Sony downgraded its operating income forecast for the fiscal year by 27.8% to ¥130bn (£1.07bn).
Editor: Graeme Neill