Sony has revised up its earnings forecast for it gaming and virtual reality (VR) divisions in its latest corporate strategy meeting while cutting its expectations for its image sensor business as the smartphone markets dwindle.
The Japanese tech giant released the revised full-year targets early on Wednesday. The company revised down the targets for its semi-conductor business (which creates image sensors for smartphones) from 1,100 billion yen–1,250 billion yen ($10.7 billion – $12.2 billion) down to 780 billion – 830 billion yen.
Sony blamed the lower-than-expected sales on a slowdown in the smartphone market. This drop-off was due to an increased competition at the top and bottom ends of the market, according to Ian Fogg, senior director of mobile & telecoms at market researchers IHS Technology.
"Sony's component business, for example their camera sensor business, is more exposed to the overall smartphone market volumes," he added "Sony supplies many of its handset competitors such as Apple and Xiaomi, and if those vendors see a slowdown it also impacts Sony's sensor business."