On Tuesday (27th October 2020), Sony published its financial report for three months from July to September.
The reports show stability in the company’s smartphone business. However, the Pictures department took a hit due to the pandemic. Here’s what the report details.
Smartphone Shipments
According to the report, the company shipped 600,000 smartphones, which levels with the same period last year. This might not look like good news, but Xperia shipments actually saw a decline earlier, hitting their lowest point. At the beginning of the year, the company only shipped 400,000 units. Moreover, the final quarter of the year is usually the strongest for Sony, so let’s see if the numbers go up.
Moreover, the company does not exactly have a separate mobile division. It got folded into the Electronics Products & Solutions division, which is reporting higher revenue and operating income this quarter. The company has forecasted the sales for the full year to remain level, but with slightly higher operating income.
Game and Network Services
Sony’s Game and Network reports clearly show the effects of the COVID-19 pandemic. The said division saw higher sales and profits compared to the same period last year. However, sales of PlayStation 4 are declining as the console has reached the end of its life. Moreover, the company is grappling to meet the high demand for the PS5, with game sales and PlayStation Plus subscriptions on the rise.
Sony Pictures
Amidst all this, the Sony pictures division took a hit mainly because there are few cinemas open and few moviegoers to fill them. Its TV show production also had to be shut down. The prediction for the full year is that home entertainment and TV licensing sales will go up, but delayed theatrical releases will negatively impact the bottom line.
Imaging & Sensing Solutions
This is one of Sony’s strongest divisions which ran into a few bumps. It has reported lower sales, and the company had to write down some smartphone image sensors it had in its inventory. Moreover, the R&D costs are going up.
The overall numbers of this quarter show slightly lower revenue, but operating income is up 14% compared to the same period last year. The conglomerate also managed to lower its effective tax rate, which also helped perk up the numbers.
