Yup, you read the title right. Logic would dictate that the less sales you made, the more your profit declines(like Apple); but now Sony is reporting that they have made a record in profit in nearly a decade and they sold less phones… Confused much?
Now lemme clarify some things that may be causing the ambiguity. First off, one thing you should understand about these large tech companies is the fact that they have multiple divisions or sections if you may.
Samsung Mobile depends on Samsung’s main or core business for funds, LG Mobile depends on LG Chem and other subsidiaries to stay afloat; you get the point now? These companies dabble into more than one thing at a time for maximum profit. So if one section is failing they have other sections to fall back to, to resuscitate the failing arm or they could just cut their losses and sell it off like Nokia did.
Sony Mobile is the division of Sony that handles their phones and they have been experiencing a reasonable decline in sales and this is actually not hurting the Sony company as a whole – profit wise, since the bulk of Sony’s income comes from the Play Station 4 and Sony Financial Services.; on the contrary, they are making more profit than ever.
330% operating profit and 666% Net profit according to Sony’s books
But all this money as I stated earlier is going to be pumped into their failing arm, this time – Sony Mobile to try to revive it. But they can only bear this loss for so long; this is probably why Sony President Hazuo Hirai gave Sony Mobile till the end of 2016 to start making profits or “they’d face the consequences”. Consequences that I think means being either closed entirely or sold off.
Sony Mobile on the other hand has actually been making a lot of bad choices as of late: I mean, what kind of company slaps a high end price tag on a mid range phone?! – Apart from Apple of course.
Will this be the demise of Sony Mobile? There’s every chance there won’t be a flagship Sony device next year or there could be a killer Sony device next year. I sure hope there are a couple of aces up their sleeves.