The effects of tough price competition in the electronics and cell phone businesses hit Sony's profits during the April to June quarter, it said Tuesday.
Net profit fell 47 percent against the same period last year to
But the unchanged sales figure hides a good deal of movement within several of Sony's key business areas during the quarter. Sales and profitability of its Bravia LCD TVs (liquid crystal display) increased and the game business is finally back in the black after the launch of the PlayStation 3 console, however the Cybershot and Handycam digital camera and Vaio PC businesses, which have been doing well for Sony recently, hit hurdles in the form of increased competition.
Overall electronics sales rose 0.7 percent to
The electronics business was also hit by a collapse in income from affiliated cell-phone maker Sony Ericsson. The company contributed 97 percent less profits to Sony during the current quarter than it did last year.
On the positive side, an increase in sales of Bravia TVs led Sony's regional electronics sales growth worldwide except Japan, where the popularity of Blu-ray Disc recorders was notable. Sony hopes to ship 600,000 Blu-ray Disc recorders and 2.5 million Blu-ray Disc players worldwide this year, it said.
Sony's games sector saw 17 percent higher sales and an operating profit of
Sony's operating profit in the first quarter was
Looking ahead to the full financial year, Sony raised its sales estimate by 2 percent to
Profit forecasts were cut to reflect lower results from Sony Ericsson with full-year net income being taken down 17 percent to
Sony Q1 Earnings Table
April to June 2008 April to June 2007 Change
Sales and operating revenue
Source: Sony Corp.