Sony Post $261 Million Profit for First Quarter of 2014

Sony posted a first quarter net profit of $261 million, which is a sliver of good news for the hardware giant who had to sell off assets to stem the tide of losses last year. Operating profit at $680 million for the quarter was nearly double that of what the manufacturer achieved during the same period last year. Strong sale of Sony’s latest console, the PlayStation 4, along with mainstream success of movies like The Amazing Spider-Man 2 and 22 Jump Street were the main reasons for Sony’s profitable quarter. As for the manufacturer’s Xperia smartphone business, things aren’t looking any better, as Sony has posted a loss of $26 million for the quarter. As a result, the manufacturer slashed its sales forecast for this year from a projected 50 million to 43 million units. Even after a significant consumer interest in devices like the Xperia Z2, Sony has not managed to turn a profit from the mobile unit, citing a declining demand for smartphones as the main cause for the less than stellar sales. Even though the first quarter was profitable, Sony is estimated to accrue around $487 million in losses over the course of the year as the manufacturer restructures its business units. Source: Sony