Sony warns of smartphone weakness

TOKYO: Japan’s Sony Corp warned it does not now expect to make money on smartphones this year, citing weak demand, but said restructuring will help it turn a profit in its loss-making consumer electronics division for the first time in four years.

Sony, which reported a doubling of operating profit in the April–June period boosted by its games and networks division and a one-off asset sale, cut its smartphone sales target this fiscal year by 14%. Analysts had said the initial target was too ambitious amid stiff competition from both high-end rivals like Apple Inc and cheaper Asian electronics makers.