This situation has brought the electronics company to the point that it has had to suspend its dividend.
For the first time since the company was first listed on the Tokyo Stock Exchange, back in 1958, Sony will be suspending its dividend and will not make a payout, because of the $2.1 billion loss that it saw throughout the fiscal year, caused primarily by its mobile technology business.
Sony had been predicting a comeback in its business for mobile devices, but it experienced a considerable hiccup.
In the fiscal year that ends on March 31, 2015, the company has warned that it expects that it will be posting a loss of $2.1 billion. The reason behind this unfortunate circumstance, according to the company, was the “competitive environment” that it faced in its business for mobile technology. Sony has been inundated by rivals and has not been capable of establishing distributors in some of the most important markets, such as the United States.
Though its high end mobile technology products have received greatly praised, they have fallen behind Samsung and Apple.
The waterproof bodies and overall design of some of Sony’s mobile devices, such as its Xperia smartphones, have met considerable applause, giants such as Samsung and Apple have kept those gadgets hidden in shadows. This struggle in the market isn’t one that is suffered only by Sony. Other smartphone manufacturers, such as HTC as well as many others.
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This represents the fifth time that the company has seen an annual loss in a span of six years. This also marks a very tough year for Kazuo Hirai, the CEO who took the head of the company in 2012. He continues to vow to turn the business in a positive direction.
Sony is now seeking to alter its mobile technology strategy by placing a greater focus in “certain geographical areas, premium lineups and reducing the number of models in its mid-range lineup.” This, according to a statement released by Sony. It had been reporting a 25.7 billion yen profit for its quarter that ran from April to June as a result of some of its hit movies, such as “Amazing Spider-Man 2” as well as powerful sales of its gaming console, the PlayStation 4.