September 17, 2014 Last Updated 8:11 am

Sony revises its earnings forecasts, says it was too aggressive in forecasting sales growth of its smartphones

The Japanese electronics giant Sony apparently bet the farm that consumers would want to buy its smartphones (why is anyone’s guess) and now that those sales are not materializing the company announced that it would adjust its earnings forecast. Sony sells the Xperia line of smartphones.**

“As a result of revising the Mobile Communications segment’s Mid-Range Plan… Sony Corporation will record an impairment charge of approximately 180 billion yen, the entire amount of goodwill in the MC segment, in the second quarter of the current fiscal year,” the company announced.

The impairment charge is equal to approximately $1.68 billion (US).

As a result of the adjustment, Sony now expects that it will report a significant loss for the quarter of about 230 billion yen attributable to shareholders.

Sony shares, which have been gaining ground this week in trading, are down a little less than 9 percent in pre-market trading this morning.

** Visiting the Xperia US website via a Safari browser returns an error message stating that their site does not support Safari – a sign, I suppose, that the company was never very serious about selling those phones in the first place.

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