Sony has announced its highest ever first-quarter profit of $1.43 billion (¥157.61 billion) exceeding the analysts’ estimate of ¥133.3 billion by a fair margin.
The tech-giant was in hot water five years ago, when it reported a huge loss of $2.9 billion. However since then Sony renewed its focus on the image sensor market in addition to dominating mobile and game industry.
With record first-quarterly profits, Sony seems to be on track. Sony’s sales have increased by 15% to $16.86 billion (¥1.86 trillion).
With an aim to dominate photographic image sensors market, Sony invested a mammoth $4 billion and turned the division into a separate company named Sony Semiconductor Solutions.
Earthquakes in Japan
Sony’s image sensor facilities were severely damaged last year due to earthquakes in Japan, however, the factories have recovered well, which is evident from the profits it has managed to accumulate this year.
Sony’s market control rose from 40% in 2015 to 50% this year. Sensors contribute heavily to the overall profits, contributing ¥55.4 billion of Sony’s operating profit. Sensor division’s revenue rose 41% to ¥204.3 billion.
Dual-camera sensors are a major growth area for Sony, particularly in the Chinese market. However, Sony is circumspect because it believes that the manufacturers are shifting towards cheaper sensors, therefore estimating its sensor sales to be lower by 2.9%.
Sony CEO, Kazuo Hirai’s strategy of focusing on image sensors is starting to pay off with 35% increase in share values for the shareholders. What’s more, the company is all set to post its best-ever annual profits in two decades.