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Sony Mobile posts 1.15 billion Euro loss in FY2011

Revenues fall more than 12% yoy

Sony Mobile posts 1.15 billion Euro loss in FY2011
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Sony has announced revenues for its newly formed Mobile division fell by 12.4 percent in financial year 2011 to €5.29 billion (around $6.83 billion) as component shortages hit the company hard.

In all, Sony Mobile made a net loss of €1.15 billion ($1.49 billion) during a year that saw Sony complete its buyout of Sony Ericsson.

The company claims a combination of the Japanese earthquake, floods, and its refocus on smartphones hit the firm hard.

Feature flop

"This decline reflects certain component shortages resulting from the earthquake and the floods, in addition to the lower number of feature phones shipped as a result of focusing on smartphones," Sony said in its financial summary.

The firm also points to Sony Mobile's predecessor, Sony Ericsson, recoding a "valuation allowance of €654 million against certain of its deferred tax assets in Sweden in the quarter ended 31 December, 2011."

On the bright side, Sony expects sales to "increase significantly" over the course of the next financial year, thanks in part to its mobile business now being fully in its hands.

Sony's financial results comes after the firm announced 10,000 jobs are to go throughout the entire company over the course of the next 12 months as it restructures its operations.

[source: Sony (PDF)]

Keith Andrew
Keith Andrew
With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font. He's also Pocket Gamer's resident football gaming expert and, thanks to his work on PG.biz, monitors the market share of all mobile OSes on a daily basis.