A drop of 29% recorded by Sony in operating profit in the fiscal second quarter as the chip division’s profitability was lower than expected.
According to CNBC, the tech giant had revenue 2.8 trillion heyn ($18.5 billion) against 2.87 trillion. Gen. which were the forecasts of the analysts, however they registered an increase of 8% compared to last year. Operating profits were 263 billion yen vs. 304.4 billion yen forecast.
The company said the drop was due to a hit in its image sensor business and lower profits in its financial services and entertainment, technology and services businesses. Sony supplies chips to tech giants such as Apple, which uses its semiconductors in Her iPhone.
Despite the drop in profits, the company raised its forecasts on psales for the entire year, which he expects to reach a total of 12.4 trillion. Gen (beating forecasts of ¥12.2 trillion) as it will benefit from positive exchange rate differentials as the yen has weakened significantly against the dollar.
Sony is targeting sales 25 million PlayStation 5 consoles (PS5) this financial year. It sold 4.9 million PS5 units in the second quarter, compared to 3.3 million units in the same period a year earlier. Sony raised its full-year gaming unit sales forecast by nearly 5% to 4.36 trillion. yen.