Sony used to be one of the top performing companies in the world however today it is struggling to generate income. Facing stiff competition from other manufacturers, the company is forced to restructure its business hoping that it will reclaim its past glory.
The company recently released its 2013 fiscal year results (ending March of this year) shows that the company generated sales revenues of $75.4 billion. The company however also lost $20.62 billion and it doesn’t stop here. The company predicts that for the next fiscal year ending on March 2015 it will lose $489 million. Analysts not connected with the company however forecasts the company to lose $580 million this year which is higher than what the company expects.
The only strong performer of the company so far is its Xperia range of products which has sold 39 million units for the fiscal year ending this March. For this fiscal year the company is setting its target higher with an expected 50 million units to be sold which is a 28% improvement.
To be able to achieve this number company must continue to release its mid-range and high-end Xperia devices in more markets. The company has been successful with its Z line of devices starting with the Xperia Z in 2013 and now with its flagship smartphone the Xperia Z2. What makes these devices attractive to consumers is that aside from having premium specs these devices comes with a waterproof and dustproof feature.
What’s probably going to be a challenge in reaching the 50 million unit mark is the fact that the Xperia Z2 is only going to be available in the US through Sony’s website and probably Verizon as well. The company’s previous devices such as the Xperia Z and Z1 were carried by T-Mobile which helped move a lot of units.
The other strong performer of the company is its PlayStation 4 which generated a 54% increase in sales. The rest of the company’s products are the reason why they are losing money.