Sony, Sharp Report Big Losses As LCD TV Sales Slip

Sony has reported that despite making revenues of $19.2 billion for its last quarter it managed to make a net loss of $312 million. Incurred costs from restructuring its division containing Sony Mobile contributed to the loss, with a small loss from its gaming division. Bigger loss contributions came from Sony’s Entertainment’s division, which includes its TV manufacturing–reflecting the woes of the greater industry itself.

Meanwhile Sharp has also reported its quarterly finances, which contain a significantly larger loss than had been predicted. Sharp’s operating loss of 94.1 billion yen ($1.2 billion) is a huge slump from the 3.5 billion yen profit it managed a year ago, and it too blames a collapse in HDTV sales for the problem along with overcapacity issues at its main LCD plant. Sharp has cut its full-year forecasts and also is considering up to 5,000 layoffs.

Earlier this year Sharp sold a significant stake in its LCD plant at Sakai to a division of Foxconn, Apple’s major manufacturing partner. In April Sharp noted it was making the world’s first IGZO displays, a much-improved LCD system that is strongly rumored to be the screen for Apple’s upcoming iPhone and possibly iPad mini.

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