Sony writes down annual profit for the year 2016
February 02, 2017 – Sony Corporation has told its shareholders to expect less annual profit for the year 2016. The crowd is expecting Sony to release the annual revenue report in March this year. Sony Corp, one of the oldest multinational companies in Japan, was well known for producing a vast range of CRT-Television sets before LCD and other TV-sets made CRT history. Sony has made tons of money from selling TVs and other electronic devices all across the world. Around the year 2000, Sony entered the world of Video Gaming with a bang when they introduced the PlayStation, the revolutionary gaming console.
Nowadays, Sony is making a huge chunk of money from their gaming-department. Sony also has a good presence in movie/TV-shows production industry. Sony Music Entertainment is one of the largest music recording companies in the world. Like Samsung, Sony also has presense in the Semiconductor business.
According to few inside reports, Sony’s annual income for the year 2016 was going to be around $2.8 billion, but due to unseen circumstances, the income now is expected to be around $2.1 billion. Sony’s movie/entertainment business is struggling these days. One of the reasons for this is the decrease in Blu-ray and DVD sales. Some experts believe that this decrease in sale of disc-based products is due to the increasing trend of Online-Downloading options. Customers can purchase games, movies, and TV-shows online and then download them directly to their PC or any other device they are using. Online downloads have severely affected the sales of DVDs and Blu-ray discs. Many consumers prefer to download the items they purchase directly to their PC instead of waiting for the DVD/Blu-ray to arrive by post.
The movie business of Sony took a $1 billion write down. This directly effects the annual income of Sony Corporation as it brings more than ten percent of Sony’s net income. But not every news is bad for shareholders of Sony; there is some good news too. Japanese Yen is weak against US Dollar and other major currency; this has been the case since the start of Sony’s fiscal year. Weaker Yen has helped the company to make more profits.
This is because the group’s major income source is USA and tons of other countries. Sony has also made good money from their sensor selling business. Sony is producing a vast range of electronic equipment including image sensors and processors, OLED panels, and many other electronic parts. Many of these items are used in Smartphones, so you can imagine why Sony is making a lot more money from their electronic component production business. [Hint: Smartphones business is booming!]