Sony Profits Hit By Weak Camera Module Demand
Sony reduced its operating profit forecast for the FY2016/3 due to weakening demand for its camera modules made by its devices segment. Operating profit forecast has now been reduced from ¥320B to ¥290B, a drop of -9.4%.
This drop is largely due to an impairment charge of ¥59.6B as projected demand for camera modules into 2017 looks weaker. These camera modules are used both in Smart Phones and Digital Cameras.
Production problems due to the recent earthquake in the Kumamoto region have not as yet impacted on this years results. However, forecasts for next year have been delayed until the full impact of the damages has been evaluated.
Recent news about the fall in iPhone sales and the ongoing fall in Digital Camera sales would back up this assessment of future demand.
Full year results are due out on 28th April 2016.