tech news

Sony raises outlook on strong sensor demand, warns of virus risks on supply chain

TOKYO: Sony Corp raised its annual revenue outlook on robust gross sales of smartphone picture sensors after reporting a smaller-than-expected decline in quarterly revenue, but it surely warned of an influence from the Wuhan coronavirus on its international provide chain.

Demand for picture sensors has been robust sufficient that even with its vegetation working at full capability Sony has been unable to pile up deliberate inventories, Chief Monetary Officer Hiroki Totoki stated at an earnings briefing on Feb 4.

However he stated sensor shipments might be disrupted if the unfold of the coronavirus forces shopper smartphone makers to droop their meeting vegetation in China for a chronic interval.

The virus outbreak may additionally rattle provide chains for its PlayStation gaming {hardware} and different client electronics, he stated.

“We won’t deny the potential for the virus menace increasing to a scale massive sufficient to wipe out our newest upward earnings revision,” Totoki stated.

The Japanese leisure and electronics agency raised its annual working revenue forecast by 5% to 880 billion yen (RM33.15bil), roughly in step with the 878.47 billion yen (RM33.1bil) consensus of 22 analysts compiled by Refinitiv.

For the October-December quarter, revenue dropped 20% to 300.1 billion yen (RM11.31bil), nonetheless beating the 271.07 billion yen (RM10.22bil) common analyst estimate. Excluding an accounting achieve linked to the acquisition of music writer EMI and that boosted revenue a yr earlier, the newest quarter marked a revenue enhance.

Sony’s sensor enterprise continued to thrive as smartphone makers compete to undertake bigger picture sensors and a number of lenses on embedded cameras for improved image high quality, driving quarterly revenue on the enterprise by 62% to 75.2 billion yen (RM2.83bil).

The Japanese agency controls a few half of the world’s picture sensor market, supplying most international smartphone makers together with Apple Inc and Huawei Applied sciences Co Ltd.

To scale back dependence on smartphones, Sony has been engaged on sensors for automotive purposes.

In the meantime, Sony’s gaming enterprise noticed revenue fall 27% to 53.5 billion yen (RM2.02bil) as gross sales of its six-year-old PlayStation Four console continued to say no.

The agency has stated the PlayStation 5, scheduled for launch this yr, will characteristic higher graphics, superior haptic controllers and different enhancements.

Sony’s share value has shot up greater than 40% over the previous yr to its highest in practically 20 years – a vote of confidence for Chief Government Kenichiro Yoshida’s skill to retain momentum after a company turnaround led by his predecessor. – Reuters

Leave a Reply

Your email address will not be published. Required fields are marked *