Sony's Woes This Year.

Sony has publicly announced the losses it incurred in operations this year despite the growing market for smartphones and other electronic devices. The company is, however, bent on retaining mobile as a core division even if it is implementing a restructuring program by initially booking impairment charges on its financial statements. The revised new loss forecast is now $2.15 billion or 230 billion yen, which is far from the previous figure of 50 billion yen. As to what components the restructuring is expected to include remains to be seen for now.

One avenue for its success is by forging a good working relationship with network providers abroad or by discovering new markets. The plan also calls for the non-payment of dividends this year, the first time after being listed in 1958. A total of 1,000 employees will be put out of work for the mobile business to trim down production cost. Emphasis will be on profitability and identifying market risks to be able to institute stop-gap measures that will reduce expenditures while generating more revenues.

Sony is already behind newcomers in the mobile industry such as Xiaomi which continues to dominate in the Chinese market. The impairment has been attributed to the declining sales of smartphones and the company is focusing on lucrative markets presupposing that it is leaving those that are continuously contributing to the losses.