Sony’s second-quarter profits have greatly diminished, but it’s not mobile’s fault

Sony Xperia X Compact
Malarie Gokey/Digital Trends
Sony has made a major resurgence in recent years. Following a changing of the guard at the very top of the company, unprofitable divisions have been shuttered or streamlined and its entertainment business has flourished. It’s only because of those changes that the recent drop in net income was stopped when it was. Sony is more resilient than its figures initially let on.

For the second quarter of 2016, Sony’s net income is down nearly 86 percent year over year. Even without knowing the actual numbers, that’s a tangible figure that would raise eyebrows and eyelids of any observer or analyst. It’s not necessarily Sony’s fault, however. As TechCrunch explains, much of this downturn can be laid at the feet of international events like the strong performance of the Japanese yen, or more national ones, like the Kumamoto earthquake.

Ultimately, these events led to Sony posting a net income of just $48 million for the quarter — a stark difference from this time last year, when it earned $336 million. Operating income was also down, but not by such extremes. It fell by a little less than half, to $453 million.

Sony’s restructuring in recent years made the company far more resilient to these exterior factors.

One of the biggest change-ups has been in its mobile space. While this same period last year saw the division sap more than $20 million from Sony’s operating income, this year it contributed $37 million to it.

This is even more impressive when you consider that Sony actually sold just shy of 40 percent less handsets this quarter than the same time last year. This is where the restructuring came into play. Sony refocused its efforts on high-volume devices, killing off midrange handsets and reducing sales in regions that were unprofitable.

Sony also seems to have found profitability in its home entertainment sector. Televisions were one of its biggest loss industries just a few years ago, as it struggled to compete with the likes of Samsung and companies from China. In the second quarter of 2016, this division managed to raise its operating income by 11.4 percent, to $174 million.

These turnarounds were backed up by traditionally strong segments of Sony’s business, such as its game and network services, which includes the PlayStation brand. It contributed $188 million to operating income totals. While this represented a drop of 20.6 percent year over year, Sony attributes much of that to the appreciation of the Japanese yen, as well as reduced pricing on PlayStation hardware.

So while Sony’s finances might not look as strong this quarter, in actuality it’s much sturdier as a company than it was in recent years. Despite international pressure, it has remained in the black.

Cars

Aston Martin’s 1,000-hp Valkyrie will boast the Mona Lisa of the engine world

Aston Martin has released new details about its F1-inspired Valkyrie hypercar. Co-developed with Red Bull Racing, the Valkyrie will be one of the most aerodynamic production cars ever made.
Movies & TV

Pedro Pascal officially cast as 'The Mandalorian' as Disney show fills out cast

The Mandalorian, Jon Favreau's live-action Star Wars series planned for Disney's streaming video service, will be one of the most expensive television shows ever made. Here's everything we know about it so far.
Mobile

The Galaxy S10 may be announced before MWC, sell for up to $1,750

While we still may be months away from an announcement, there's no doubt about it: Samsung is working hard on its successor to the Galaxy S9. Here's everything we know about the upcoming Samsung Galaxy S10.
Apple

Patent highlights Apple's sky-high ambitions for AirPower wireless charger

At its September event last year, Apple unveiled the AirPower -- its new wireless charging mat that will allow you to charge multiple devices at one time. It has not yet been released. Here's everything we know about the device so far.
Computing

A second Wells Fargo glitch results in the foreclosure of more homes

A computer error has struck Wells Fargo once again, resulting in hundreds more homes being mistakenly foreclosed after a first glitch was reported in August. To compensate one customer, the bank sent a check for $25,000.
Mobile

Samsung partners with AT&T to create a multi-band 5G smartphone for late 2019

Ready to experience a radical transformation in mobile communication? AT&T is launching mobile 5G in cities across the country over the next few months. Here's everything you need to know about the AT&T 5G rollout.
Mobile

Qualcomm's 3D Sonic fingerprint sensor could make your next phone more secure

Almost exactly a year after the launch of the Snapdragon 845, Qualcomm took the wraps off of its next-generation mobile platform, the new Snapdragon 855. The new chip puts an emphasis on A.I. performance.
Movies & TV

Movies Anywhere service adds Comcast films to its library and devices

Movies Anywhere lets you watch movies purchased from different services all in one place, and it just got even better with the addition of Comcast, which joins Microsoft, Amazon, iTunes, Google Play, Vudu, and FandangoNow.
Web

Can Microsoft’s Airband Initiative close broadband gap for 25M Americans?

A new report from the Federal Communications Commission (FCC) says that 25 million Americans do not have access to broadband internet. Of these, more than 19 million are living in rural communities. Can Microsoft help out?
Business

Amazon scouted airport locations for its cashier-free Amazon Go stores

Representatives of Amazon Go checkout-free retail stores connected with officials at Los Angeles and San Jose airports in June to discuss the possibility of cashier-free grab-and-go locations in busy terminals.
Business

‘Ralph Breaks the Internet’ wins one of the worst box-office weekends of 2018

Wreck-It Ralph sequel Ralph Breaks the Internet stayed on top of the weekend box office for the third week, winning what was one of the worst weekends for ticket sales in the US so far this year.
Computing

Google+ continues to sink with a second massive data breach. Abandon ship now

Google+ was scheduled to shut its doors in August 2019, but the second security breach in only a few months has caused the company to move its plan forward a few months. It might be a good idea to delete your account sooner than later.
Business

How to start your online business in 6 simple steps

Making the right choices now can greatly impact your success down the line, and the last thing you want to do is spend your energy revisiting old decisions instead of growing your company.
Business

Chinese court upholds Qualcomm's complaint that Apple infringed on two patents

Apple is following the FTC's lead and has sued Qualcomm for a massive $1 billion in the U.S., $145 million in China, and also in the U.K., claiming the company charged onerous royalties for its patented tech.