Sony Surprises With Profit Warning on Sale of Battery Business

Sony Surprises With Profit Warning on Sale of Battery Business

HIGHLIGHTS

  • Sony to concentrate on videogames, entertainment and camera sensors
  • Expects JPY 270 billion in operating profit for year ending in March
  • Sony to sell its battery business for about JPY 17.5 billion

Sony Corp cut its annual profit outlook due to losses related to the sale of its battery business – disappointing a market that had been hoping for an upward revision on buoyant sales momentum for PlayStation 4 and the launch of its virtual reality headset.

Emerging from years of restructuring, the consumer electronics giant is refocusing its business to concentrate on videogames, entertainment and camera sensors and the sale of its battery business was part of that effort.

But while the sale to Murata Manufacturing Co had been flagged in July, its impact on earnings appeared to be greater than expected.

Sony now expects to post JPY 270 billion ($2.6 billion or roughly Rs. 17,175 crores) in operating profit for the year ending in March, down JPY 30 billion from its previous forecast made in July and an 8 percent decline from the previous year.

It also falls short of a Thomson Reuters Starmine SmartEstimate of JPY 308.65 billion (roughly Rs. 19,623 crores) derived from 27 brokerage estimates.

Analysts have been hopeful that brisk sales of PlayStation 4 gaming consoles and software titles would boost profits and that this would only improve with upgraded versions of the console during the year-end holiday shopping season.This month Sony also unveiled its PlayStation VR headset and it said that production of image sensors would return to full capacity in the second half due to a pickup in smartphone demand.

(Also see: PlayStation VR: Almost There but Not Just Yet)

Sony said on Monday it has agreed to sell its battery business for about JPY 17.5 billion and expects to book an impairment charge of JPY 33 billion related to the sale.

It will announce its first-half results and further details of its full-year outlook on Tuesday.

© Thomson Reuters 2016

Tags: Sony, Sony Profit, PlayStation 4, PlayStation VR, Wearables, Virtual Reality, VR, Gaming, Cameras, Mobiles, Home Entertainment
[“source-ndtv”]

Apple Sees Drop in Profit, Revenue as iPhone Sales Slump

Apple Sees Drop in Profit, Revenue as iPhone Sales Slump

Apple’s quarterly profit slumped on a widely expected drop in iPhone sales, but gains in services offered some optimism on the company’s efforts to curb dependence on its smartphone.

The company said Tuesday that profit fell 19 percent to $9 billion (roughly Rs. 60,134 crores) in the fiscal quarter ending September 24. Revenue fell nine percent to $46.9 billion (roughly Rs. 3,13,655 crores) from $51.5 billion (roughly Rs. 3,44,403 crores) a year earlier.

The results were largely in line with market forecasts and showed sales of the iPhone – Apple’s biggest revenue and profit driver – down five percent from a year ago to 45.5 million units.

The quarterly update only provided limited information on the reception of the newest iPhone models, the iPhone 7 and 7 Plus, which were released in early September, and was likely to benefit from the woes of rival Samsung, suffering from a massive recall of its flagship Galaxy Note 7 phone.

Analysts were expecting declines in iPhone sales with many smartphone markets saturated, a situation that has led Apple to focus on new products like the Apple Watch and services like mobile payments, Apple TV and streaming music.Chief executive Tim Cook welcomed what he called “our strong September quarter results,” saying they “cap a very successful fiscal 2016 for Apple.”

“We’re thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 percent to set another all-time record,” he said in a statement.

The world’s largest company by market value closed out its fiscal year ending September 24 with a net profit of $45.7 billion on revenues of $215.6 billion, both figures lower than the prior year.

Apple shares fell 2.7 percent in after-hours trade following the release.

“Previously, Apple was able to rely on strong sales of phones, tablets and computers to drive up revenue and profit across all geographies. This is no longer the case,” said Neil Saunders of the research firm Conlumino.

Still, Saunders noted that “Apple is being judged by its own incredibly high standards,” and that “even with the dips in growth it remains a phenomenally successful business that is far from running out of steam.”

More than device maker
Frank Gillett, a Forrester Research analyst, said the results show Apple is making progress in diversifying its mix of products and services as smartphone sales stagnate.

“The rise of services shows they’re more than a device maker,” Gillett said.

“It’s indicative of the depth of engagement of their customers.”

The more consumers use Apple applications and services, “the less likely they will switch to a rival,” Gillett said.

Apple’s results showed a six percent drop in iPad unit sales and a 14 percent decline in the number of Mac computers sold.

While iPhone sales accounted for more than half of revenues, services revenue grew to $6.3 billion as the company expanded services such as Apple Pay and its enterprise offerings.

In the key “Greater China” market, Apple said revenues were down 30 percent from a year to $8.8 billion. But the company noted a 10 percent rise in revenue from Japan and cited gains in other global markets.

Patrick Moorhead of Moor Insights & Strategy said Apple “met most expectations but didn’t have a great quarter” with sales of its main products lower.

“I’m suspecting there may have been availability issues on the iPhone 7 and Watch,” Moorhead said.

Still, Apple “had a banner quarter in services” which is a positive sign, according to the analyst.

“It’s important the investment community take a long view versus looking at short-term growth estimates as a knee-jerk Apple response would only work against the company and the stock price,” Moorhead said.

On a call with analysts, Cook declined to comment on what Apple has in the pipeline but did indicate the company was investing in “products in the development phase which have not yet reached the market.”

Asked to explain the sharp rise in research and development spending, Cook said, “We’re confidently investing in the future.”

Tags: Apple, Home Entertainment, Wearables, PC, Laptops, Internet, Apps, Tablets, Mobiles
[“source-smallbiztrends”]

Google Parent Alphabet Profit Surges on Mobile, Video Ads

Google Parent Alphabet Profit Surges on Mobile, Video Ads

HIGHLIGHTS

  • Alphabet’s net income climbed 27 percent to $5.06 billion
  • Google is competing with Facebook for dominance in mobile advertising
  • Advertising accounted for 89.1 percent of Google’s total revenue

Google parent Alphabet Inc bested analysts’ estimates for third-quarter profit and revenue on Thursday as the search company showed it has honed its core business for the mobile era and is closing in on the next wave of computing.

Propelled by strong advertising on mobile devices and video site YouTube, Alphabet’s net income climbed 27 percent to $5.06 billion (roughly Rs. 33,839 crores). Revenue jumped 20 percent to $22.45 billion (roughly Rs. 1,50,147 crores), marking the search giant’s seventh straight quarter of double-digit revenue growth.

(Also see: Google Pixel XL Review)

The company authorized a $7 billion repurchase of its Class C stock, pleasing investors who had been craving more after a $5 billion repurchase last year.

Google is competing fiercely with social network Facebook for dominance in the fast-growing mobile advertising market. Google Chief Executive Sundar Pichai touted the company’s gains in the space, and was bullish about recent product launches such as the Google Assistant, the Google Home smart speaker and refinements to the enterprise cloud business.

The products are aimed at the rise of voice search, which many analysts believe will succeed keyboards and touch screens as a primary way users interact with devices.(Also see: Google Assistant Goes Head to Head With Apple’s Siri in Comparison Video)

“We feel well positioned as we transition to a new era of computing,” Pichai said in an conference call. “This new era is one in which people will experience computing more naturally and seamlessly in the context of their lives, powered by intelligent assistants and the cloud.”

Shares of Alphabet, the world’s No. 2 company by market value, were up 1.6 percent in after-hours trading.

The company posted third-quarter adjusted earnings per share of $9.06, beating expectations of $8.63 a share on revenues of $22.05 billion, according to Thomson Reuters estimates.

Google has been dogged by concerns about how it would nudge its vast web advertising business towards mobile, but the company’s recent performance has reassured Wall Street that the transition is well underway, said analyst Colin Gillis of BGC Partners.

“It’s showing that even though they’ve hit lifetime highs, there’s still room to run,” he said.

Advertising revenue, the company’s lifeblood, rose 18.1 percent to $19.82 billion (roughly Rs. 1,32,543 crores) in the third quarter. Paid clicks, or ads for which advertisers pay only when users click on them, rose 33 percent, compared with a rise of 29 percent in the second quarter.

Cost-per-click, or the average amount advertisers pay Google, fell 11 percent in the latest period, but investors are willing to forgive the slump, for now, as it suggests strong mobile growth, said analyst Kerry Rice of Needham & Co.

YouTube continued to post robust gains, Pichai said. Over the past year, Google, Facebook and Twitter Inc have all doubled down on video, a format where advertisers are willing to pay a premium for a few seconds of users’ undivided attention.

Advertising accounted for 89.1 percent of Google’s total revenue in the quarter, and analysts are eager for the company to tap new sources of growth.

One of the leading contenders is Google’s cloud business, which drove a 38.8 percent rise in the company’s “other revenue.”

“As we head into 2017, I expect cloud to be one of our largest areas of investment,” Pichai said.

A relatively late entrant to the cloud business, Google is trying to steal market share from industry leaders Amazon.com and Microsoft. Amazon on Thursday reported a 55 percent revenue increase in its cloud business.

“I would hesitate to say they are competing head-to-head, but they are making up for lost ground,” Rice said.

Alphabet’s “Other Bets” unit generated revenue of $197 million, primarily from Nest, Google Fiber and Verily units, Chief Financial Officer Ruth Porat said during the call.

(Also see: Google Fiber Halts Expansion Plans as Chief Steps Down)

Alphabet said this week it was pausing the rollout of Fiber, a high-speed internet service, in some US cities and that its leader, Craig Barratt, would leave.

Porat played down analysts’ concerns of instability at Other Bets, which has suffered a wave of executive departures, including Nest founder Tony Fadell, self-driving car technology chief Chris Urmson and, most recently, Barratt.

“As we reach for moonshots that will have a big impact in the longer term, it’s inevitable that there will be course corrections along the way, and that some efforts will be more successful than others,” Porat said.

Other Bets, which also includes research unit X, reported an operating loss of $865 million, down from a year-ago loss of $980 million. The narrowing loss suggests Porat is instilling the financial discipline investors have long hoped to see from the company, said Gillis.

“Everybody loves Ruth,” he said.

© Thomson Reuters 2016

Tags: Google, Alphabet Inc, Alphabet Earnings, Cloud, Sundar Pichai, Internet, Android, Apps, Mobiles, PC, Laptops, Wearables
[“source-smallbiztrends”]

Google Parent Alphabet Profit Surges on Mobile, Video Ads

Google Parent Alphabet Profit Surges on Mobile, Video Ads

HIGHLIGHTS

  • Alphabet’s net income climbed 27 percent to $5.06 billion
  • Google is competing with Facebook for dominance in mobile advertising
  • Advertising accounted for 89.1 percent of Google’s total revenue

Google parent Alphabet Inc bested analysts’ estimates for third-quarter profit and revenue on Thursday as the search company showed it has honed its core business for the mobile era and is closing in on the next wave of computing.

Propelled by strong advertising on mobile devices and video site YouTube, Alphabet’s net income climbed 27 percent to $5.06 billion (roughly Rs. 33,839 crores). Revenue jumped 20 percent to $22.45 billion (roughly Rs. 1,50,147 crores), marking the search giant’s seventh straight quarter of double-digit revenue growth.

(Also see: Google Pixel XL Review)

The company authorized a $7 billion repurchase of its Class C stock, pleasing investors who had been craving more after a $5 billion repurchase last year.

Google is competing fiercely with social network Facebook for dominance in the fast-growing mobile advertising market. Google Chief Executive Sundar Pichai touted the company’s gains in the space, and was bullish about recent product launches such as the Google Assistant, the Google Home smart speaker and refinements to the enterprise cloud business.

The products are aimed at the rise of voice search, which many analysts believe will succeed keyboards and touch screens as a primary way users interact with devices.(Also see: Google Assistant Goes Head to Head With Apple’s Siri in Comparison Video)

“We feel well positioned as we transition to a new era of computing,” Pichai said in an conference call. “This new era is one in which people will experience computing more naturally and seamlessly in the context of their lives, powered by intelligent assistants and the cloud.”

Shares of Alphabet, the world’s No. 2 company by market value, were up 1.6 percent in after-hours trading.

The company posted third-quarter adjusted earnings per share of $9.06, beating expectations of $8.63 a share on revenues of $22.05 billion, according to Thomson Reuters estimates.

Google has been dogged by concerns about how it would nudge its vast web advertising business towards mobile, but the company’s recent performance has reassured Wall Street that the transition is well underway, said analyst Colin Gillis of BGC Partners.

“It’s showing that even though they’ve hit lifetime highs, there’s still room to run,” he said.

Advertising revenue, the company’s lifeblood, rose 18.1 percent to $19.82 billion (roughly Rs. 1,32,543 crores) in the third quarter. Paid clicks, or ads for which advertisers pay only when users click on them, rose 33 percent, compared with a rise of 29 percent in the second quarter.

Cost-per-click, or the average amount advertisers pay Google, fell 11 percent in the latest period, but investors are willing to forgive the slump, for now, as it suggests strong mobile growth, said analyst Kerry Rice of Needham & Co.

YouTube continued to post robust gains, Pichai said. Over the past year, Google, Facebook and Twitter Inc have all doubled down on video, a format where advertisers are willing to pay a premium for a few seconds of users’ undivided attention.

Advertising accounted for 89.1 percent of Google’s total revenue in the quarter, and analysts are eager for the company to tap new sources of growth.

One of the leading contenders is Google’s cloud business, which drove a 38.8 percent rise in the company’s “other revenue.”

“As we head into 2017, I expect cloud to be one of our largest areas of investment,” Pichai said.

A relatively late entrant to the cloud business, Google is trying to steal market share from industry leaders Amazon.com and Microsoft. Amazon on Thursday reported a 55 percent revenue increase in its cloud business.

“I would hesitate to say they are competing head-to-head, but they are making up for lost ground,” Rice said.

Alphabet’s “Other Bets” unit generated revenue of $197 million, primarily from Nest, Google Fiber and Verily units, Chief Financial Officer Ruth Porat said during the call.

(Also see: Google Fiber Halts Expansion Plans as Chief Steps Down)

Alphabet said this week it was pausing the rollout of Fiber, a high-speed internet service, in some US cities and that its leader, Craig Barratt, would leave.

Porat played down analysts’ concerns of instability at Other Bets, which has suffered a wave of executive departures, including Nest founder Tony Fadell, self-driving car technology chief Chris Urmson and, most recently, Barratt.

“As we reach for moonshots that will have a big impact in the longer term, it’s inevitable that there will be course corrections along the way, and that some efforts will be more successful than others,” Porat said.

Other Bets, which also includes research unit X, reported an operating loss of $865 million, down from a year-ago loss of $980 million. The narrowing loss suggests Porat is instilling the financial discipline investors have long hoped to see from the company, said Gillis.

“Everybody loves Ruth,” he said.

© Thomson Reuters 2016

Tags: Google, Alphabet Inc, Alphabet Earnings, Cloud, Sundar Pichai, Internet, Android, Apps, Mobiles, PC, Laptops, Wearables
[“Source-Gadgets”]

EA Posts Unexpected Profit on Higher Game Downloads

EA Posts Unexpected Profit on Higher Game Downloads

Video-game publisher Electronic Arts Inc, known for titles such as FIFA and Star Wars Battlefront, reported an unexpected first-quarter profit, helped by higher downloads of its games.

The company’s digital business, where players download digital versions of games, generates higher margins than sales of physical discs.

EA’s shares initially rose about 2.5 percent in extended trading, before reversing course to trade down 1.5 percent as the company’s current-quarter revenue forecast was slightly below analysts’ estimates.

The company forecast revenue of about $1.08 billion (roughly Rs. 7,212 crores), including a change in deferred revenue from online-based games. Analysts were expecting $1.11 billion (roughly Rs. 7,412 crores), according to Thomson Reuters I/B/E/S.

EA is releasing its latest FIFA game four days before the September-quarter ends, while it stops accounting for revenue from its digital business about five days before the quarter ends, Chief Financial Officer Blake Jorgensen said in an interview.

Jorgensen estimated digital sales from the latest FIFA game would have pulled in about $75 million (roughly Rs. 500 crores) in revenue, which the company will now recognise in the third quarter.

x

However, strong digital sales, particularly of FIFA Ultimate Team on console and Star Wars: Galaxy of Heroes on mobile, boosted EA’s results in the first quarter, a seasonally slow period for the company.

EA’s adjusted revenue fell 1.6 percent to about $682 million in the three months ended June 30. On an adjusted basis, EA earned 7 cents per share.

Analysts on average were expecting a loss of 2 cents per share and revenue of $650.7 million.

Adjusted sales from EA’s digital business rose 6.8 percent to about $568 million and accounted for 83.3 percent of total revenue.

Starting from this quarter, EA will stop reporting non-GAAP measures that adjust for deferred revenue, as it has done since fiscal 2008, to comply with stricter guidelines by the U.S. Securities and Exchange Commission.

© Thomson Reuters 2016

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Tags: Apps, EA, Electronic Sports, FIFA, Gaming, Star Wars

 

[“Source-Gadgets”]

MRF profit margin unscathed by higher rubber prices

Photo: Ramesh Pathania/Mint

Photo: Ramesh Pathania/Mint

In spite of its size and strong brand equity, MRF Ltd has not been spared Chinese competition that has created havoc in the domestic tyre industry. Net revenue at Rs.3,482 crore was flat compared with a year back and was lower than estimates on the Street. The few analysts who track the stock reckon that the reason could be a combination of lower prices and sales volumes during the quarter.

But then, as is the case so often, the tyre maker surprised positively on profitability. The quarter’s operating profit atRs.840 crore was a significant beat on analysts’ forecast and also a tad higher than the year-ago period.

The company saved on raw material costs, which were about 140 basis points lower than a year ago. However, it was in line with the industry trend this quarter where tyre makers have reported better profit margins in spite of a spurt in rubber prices. The firms might have used their low-cost inventory of rubber. A basis point is 0.01%.

But this also means that the impact of higher rubber prices might be felt in the forthcoming quarters. Also, the crude oil price has been northbound from a year ago, which will have a bearing on operating profitability. In any case, MRF clocks the highest operating margin in the segment. The June quarter’s rock solid 24% margin was slightly higher than what the company reported a year ago but surpassed theBloomberg forecast of 22.2%.

Robust operating performance led to a net profit of Rs.490 crore, which beat the forecast on the Street by 33%. MRF’s stock at Rs.36,689.30 discounts its FY2018 earnings per share estimate by about seven times. This is reasonable, given that it is in line with industry price-to-earnings ratio, but commands a premium position. Any favourable change in key input prices such as rubber or higher sales volumes wil have a positive impact on the stock.

[“Source-Livemint”]

Samsung’s Profit Surges to 2-Year High on Galaxy Phone Sales

Samsung's Profit Surges to 2-Year High on Galaxy Phone Sales

Samsung Electronics Co. reported Thursday forecast-beating earnings results that were the best in two years as consumers snapped up its Galaxy smartphones, in a sign the company is getting its mojo back while rivals fail to deliver new smartphones.

The South Korean company forecast that its performance will continue to be “solid” during the rest of the year because demand for its lucrative components, such as high-end displays called Oled that are used as screens for premium smartphones, is expected to increase “substantially.” It expects to spend more, however, on mobile marketing of its upcoming large-screen smartphones, to be announced next week, which Samsung typically uses to distract consumers from new iPhone launches by Apple.

Samsung, the world’s largest smartphone maker, said its April-June net income rose 2 percent over a year earlier to KRW 5.85 trillion ($5.17 billion or roughly Rs. 34,650 crores), compared with KRW 5.75 trillion a year earlier.

That was slightly higher than forecasts, which have been revised upward in recent months to reflect stronger-than-expected sales of the new phones. Analysts had forecast net income of KRW 5.79 trillion, according to FactSet, a financial data provider.

Sales rose 5 percent to KRW 50.94 trillion ($45 billion), while operating profit surged 18 percent to KRW 8.14 trillion ($7.19 billion), in line with the company’s guidance earlier this month.

Samsung beat forecasts even as growth in the overall smartphone industry slowed. Its rival Apple, the world’s second-largest smartphone maker, is struggling to boost iPhone sales and reported a 27 percent quarterly drop in profits.

Samsung’s mobile business reported KRW 4.32 trillion ($3.82 billion) in operating income during the three-month period, its best quarterly performance since the second quarter of 2014.

Samsung estimates it shipped between 75.6 million and 78.3 million smartphones during the quarter, about twice as many as Apple’s 40.4 million iPhone sales.

The Galaxy S7 and S7 Edge smartphones drove the profit gain. The company launched the latest versions of its flagship smartphones in March, several weeks sooner than it did last year. Early launches helped Samsung report strong sales during the first quarter, and the latest results dispelled doubts it could sustain the momentum during the second quarter, since consumers continued to snap up new phones in the spring.

The company also reduced its mid- and low-end Galaxy models, helping to cut costs. During the earnings conference call, Samsung’s mobile business official said the company will launch the Galaxy C series exclusively for Chinese consumers.

The stellar performance of Samsung’s mobile division is a sign that its experiment with smartphone designs is paying off.

Samsung introduced the first of its flagship Edge smartphone series, which features curved displays that wrap around two corners of the device. But in 2015, it failed to capture demand because it ran into trouble mass producing those curved displays. The S7 Edge, with similar designs as its predecessor, saw robust demand from consumers and this time Samsung was able to deliver the products on time. The company said the Galaxy S7 Edge sales proportion increased.

The strength of the Galaxy S7 has boosted Samsung’s own component businesses. Sales of Oled, or organic light-emitting diode, display panels rose, helped by healthy sales of flagship smartphones and higher demand for flexible displays for the S7 Edge. Samsung dominates the global supply of Oled display panels for mobile phones.

Samsung is scheduled to announce the latest iteration of its Note series, the Galaxy Note 7, featuring a giant screen and a stylus, on August 2.

Tags: Android, Home Entertainment, Laptops, Mobiles, PC, Samsung, Samsung Mobiles, Tablets, Wearables
[“Source-Gadgets”]

Sony Says Deadly Japan Quakes Will Shake Profit, Sales

Sony Says Deadly Japan Quakes Will Shake Profit, Sales

Sony said on Tuesday that a pair of deadly quakes in Japan last month would dent its financial results, while the company warned that net profit would fall by nearly half, largely due to a year-earlier gain.

The quakes, which caused major damage in southern Kyushu and claimed dozens of lives, would hit operating profit in the fiscal year to March 2017 by as much as JPY 115 billion ($1.05 billion or roughly Rs. 7,101 crores), Sony said, adding that sales would fall on year.

Major firms including Sony and Toyota temporarily shuttered factories in the wake of the disaster, hitting production and sales, while costs will also include repairing damaged buildings.

“Due to the impact of the 2016 Kumamoto earthquakes, sales (in certain divisions) are expected to be lower than the level anticipated prior to the earthquakes,” Sony said.

The announcement came as Sony said it would book a net profit of JPY 80 billion this year, down nearly 46 percent from the just-ended fiscal year when it booked a one-time gain from the sale of shares in camera and medical equipment giant Olympus.

In 2013, Sony launched a medical joint venture with endoscope maker Olympus, which was struggling to deal with a massive loss-hiding scandal and was in the market for a partner.

Last month, Sony posted 147.8 billion annual profit for the year that ended in March, with its results boosted by strong sales of its PlayStation games console.

The company said at the time that it could not offer a forecast for the current year, citing the potential impact of the quakes. It began restarting affected plants earlier this month.

For the current fiscal year, Sony expects a JPY 300 billion operating profit on sales of JPY 7.8 trillion.

Download the Gadgets 360 app for Android and iOS to stay up to date with the latest tech news, product reviews, and exclusive deals on the popular mobiles.

Tags: Cameras, Home Entertainment, Mobiles, Sony, Tablets, Wearables

Sony Posts largest Annual profit in eight Years on Restructuring, games

Sony Posts Biggest Annual Profit in 8 Years on Restructuring, Games

jap electronics maker Sony Corp on Thursday stated its largest annual operating profit since monetary2007 due to value cuts in its struggling cellphone commercial enterprise and brisk call for forplaystation four videogames.

running earnings extra than quadrupled to CNY 294.2 billion ($2.70 billion) for the year ended March,roughly in line with the company‘s forecast introduced in advance this month.

however between the lines, Sony’s growth prospects can be referred to as into query as its devicescommercial enterprise, consisting of image sensors which have been crucial to revival in current years, swung to a loss of CNY 29 billion from a earnings of CNY 89 billion a year prior.

as it had previously flagged, Sony did no longer difficulty any income steerage for this business 12 months because it endured to assess the impact of earthquakes this month that halted production at itsphoto sensor plant in southern Japan. On Thursday, it stated the halt should causepredominant losses”.

The income bounce indicates that massive restructuring in patron electronics divisions consisting of cellphones and televisions is paying off after years of losses.

Sony has been transferring attention to better-margin products inclusive of sensors, but a worldwideslowdown due to the fact that past due remaining 12 months inside the market for highendsmartphones – which feature excessive-spec cameras – has dented sensor sales.

Its most important customers consist of Apple Inc, which on Tuesday mentioned its first-ever decline in iPhone sales because it struggles with an increasingly saturated market.

© Thomson Reuters 2016

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Tags: Gaming, domestic leisure, Mobiles, Sony

Nintendo Halves Profit Forecast on Slowing Sales, Strong Yen

Nintendo Halves Profit Forecast on Slowing Sales, Strong Yen

Video game giant Nintendo on Friday chopped its full-year net profit forecast in half, saying slowing sales and a recent pick up in the Japanese currency were eating into its bottom line.

The Kyoto-based company said it now expected to eke out a 17 billion ($150 million or roughly Rs. 1,022 crores) net profit in the fiscal year through March, down from an earlier JPY 35 billion target.

It also reduced its sales and operating profit forecasts. Nintendo has cut its annual targets at least twice before.

Nintendo’s announcement comes weeks after its said its nine-month operating profit from April-December had soared 35 percent, and as it gears up for its first foray into smartphone gaming next month.

The company credited its latest earnings results to strong demand for its Wii U console games, including shoot-em-up hit “Splatoon” and the 3DS portable handheld console, although holiday sales disappointed.

Japanese exporters such as Nintendo have seen their profits calculated in yen soar in recent years as the unit weakened sharply against the US dollar and other currencies.

The fall made them more competitive overseas and meant the profits earned abroad were worth more in yen.

But Japan’s currency has reversed course as a plunge in equities and commodities fuelled by fears about the world economy boosted buying of the yen, which is seen as a safe bet in times of turmoil.

On Friday, the dollar bought JPY 112.83. The unit was around JPY 121 at the end of January and had climbed over JPY 125 last summer.

“Given the sales trend… and the higher yen, we revised our earnings forecast,” Nintendo said.

It added that it now expected revenue and operating profit to come in at JPY 500 billion and JPY 33 billion, respectively, from an earlier JPY 570 billion and JPY 50 billion forecast.

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Tags: 3DS, Gaming, Nintendo, Wii U
[“Source-Gadgets”]