Sony Reported 48% Lower Profits Despite Higher Revenue During Q4 2019

Sony has reported a major decline in profits for the last quarter of 2019 as the company’s smartphone sales weaken and the PlayStation 4 hits the end of its lifecycle.

The Japanese conglomerate’s profits declined by 48% in the quarter, which included holiday season sales. The total profit reported as $2.10 billion was down from $3.83 billion reported in the same quarter last year. Revenue, on the other hand, increased by a small margin to hit $22.5 billion as compared to last year’s $21.4 billion.

Sony’s imaging and sensor business that produces smartphone lenses and image processors was a bright spot for the company. Smartphone makers are racing to put more cameras on their devices and this resulted in major success for Sony. Sales improved by 29% and total profits reached $690 million. The company was forced to double its capital to meet the demand in 2019.

Despite everything, analysts estimate a better first quarter for Sony this year. They are expecting Sony’s profits to hit $8 billion in Q1 2020.