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|---|---|
| Sony earnings boosted by weak yen and smartphone sales | Sony earnings boosted by weak yen and smartphone sales |
| (about 2 hours later) | |
| Sony has reported a jump in profits for the April-to-June quarter, boosted by a weak yen and surge in smartphone sales. | |
| It made a net profit of 3.5bn yen ($35m; £23m) in the quarter, reversing a loss of 24.6bn yen last year. | It made a net profit of 3.5bn yen ($35m; £23m) in the quarter, reversing a loss of 24.6bn yen last year. |
| Many Japanese firms have seen their profits jump amid a sharp decline in the yen's value - which lifts profits when they repatriate their foreign earnings back home. | Many Japanese firms have seen their profits jump amid a sharp decline in the yen's value - which lifts profits when they repatriate their foreign earnings back home. |
| The yen has dipped nearly 25% against the US dollar since November. | The yen has dipped nearly 25% against the US dollar since November. |
| A weak currency also makes Japanese goods more affordable for foreign buyers, helping boost sales of exporters such as Sony. | A weak currency also makes Japanese goods more affordable for foreign buyers, helping boost sales of exporters such as Sony. |
| The company said its sales rose 13% in the three months to the end of June, from a year earlier, primarily "due to the favourable impact" of the currency movement. | The company said its sales rose 13% in the three months to the end of June, from a year earlier, primarily "due to the favourable impact" of the currency movement. |
| It also raised its sales forecast for the current financial year to 7.9 trillion yen from its projection of 7.5 trillion yen in May. | It also raised its sales forecast for the current financial year to 7.9 trillion yen from its projection of 7.5 trillion yen in May. |
| Smartphone boost | Smartphone boost |
| Sony said its profit was also boosted by a rise in smartphone sales, as well as an increase in the average selling price of the handsets. | |
| Sales in its mobile products and communications division, which manufactures smartphones, rose 36% from a year earlier. | Sales in its mobile products and communications division, which manufactures smartphones, rose 36% from a year earlier. |
| Sony has launched new models in an attempt to boost its share of the fast-growing smartphone market and take on competitors such as Samsung and Apple. | Sony has launched new models in an attempt to boost its share of the fast-growing smartphone market and take on competitors such as Samsung and Apple. |
| Last month, it announced a waterproof Android smartphone with a 6.4in screen (16.3cm), the Xperia Z Ultra, which it pitched as the slimmest large-screened handset on the market. | Last month, it announced a waterproof Android smartphone with a 6.4in screen (16.3cm), the Xperia Z Ultra, which it pitched as the slimmest large-screened handset on the market. |
| It can also accept sketches or notes written using a standard pencil or metal-tipped pen in addition to an optional stylus. | It can also accept sketches or notes written using a standard pencil or metal-tipped pen in addition to an optional stylus. |
| It had unveiled a the original Xperia Z smartphone with a 5in screen in January this year. | It had unveiled a the original Xperia Z smartphone with a 5in screen in January this year. |
| However, some analysts said that it is too early to predict whether Sony will be able to match the success of its rivals in the sector. | |
| "One thing which will be interesting to see is that where their handset sales and profits come from," Gerhard Fasol of Eurotechnology Japan told the BBC. | |
| "If they are coming only from Japan, where they have the home advantage, then the growth will be limited - but if they see their global sales rise, then it will be a big positive in the long run." | |
| Entertainment spin-off | |
| The numbers have come at a time when Sony has been facing pressure from one of its biggest shareholders, hedge fund Third Point, to siphon off 20% its entertainment division. | |
| The founder of the fun, Daniel Loeb, has called upon Sony to use the cash from such a move to boost its ailing electronics arm. | |
| On Thursday, the firm's chief financial officer, Masaru Kato, said that it "is a very important proposal and we will respond after thorough discussion". | |
| However, some analysts said that the company was unlikely to accept the proposal, not least because of the positive results in the April-to-June quarter. | |
| "Third Point can keep up the rhetoric and keep making suggestions," said Mr Fasol. | |
| "Sony will listen to it - but it is unlikely they will siphon off a division just because one shareholder wants them to do so. | |
| "And Sony's refusal will only become stronger now because it looks like they are starting to get the firm back on track," he added. | |
| According to the latest numbers, Sony's Pictures division made a profit of 3.7bn yen during the period, reversing a loss of 4.9bn yen last year. | |
| Its music unit saw its operating profit rise to 10.8bn yen, from 7.3bn yen a year earlier. |