Sony Predicts 2024 Smartphone Recovery Amid Global Slump

Sony, the top supplier of camera sensors in smartphones, has adjusted its outlook, now anticipating a rebound in the smartphone industry by 2024. This revision comes in the wake of declining demand from key markets such as China and the U.S.

Previously, the electronics and entertainment titan had exuded confidence in a resurgence of global smartphone sales in the latter half of the year. This sentiment had been echoed by industry leaders like Apple, but the tune has shifted in light of recent challenges.

Many tech giants are now signalling caution, attributing the sluggish demand to China’s economic hurdles post-COVID and inflationary impacts on global consumer spending. It seems like everyone is holding back on spending right now due to inflation, with interest rates up across the board.

While Sony holds the title as the largest provider of the essential sensors in popular devices like the iPhone, its recent statements have cast a shadow on the smartphone sector. Interestingly, despite the gloomy smartphone forecast, the company has upped its annual revenue predictions, crediting successes in its gaming and entertainment segments.

Apple, a significant client of Sony, is currently navigating its most extended sales decline in years, echoing the broader industry’s struggles impacting the demand for phones and other tech devices, reports Bloomberg.

Sadahiko Hayakawa, a senior finance general manager at Sony, commented on the evolving scenario to analysts, saying, “The pace of recovery in China’s smartphone scene is lagging behind our initial estimates, and the US situation is becoming increasingly challenging. While we had forecasted a revival in the latter half of this financial year, our projections are now leaning towards a delay into the subsequent year.”

Furthermore, manufacturing complications concerning Sony’s camera sensors were highlighted as potential obstacles for the production of the iPhone 15, as previously covered by Bloomberg News.

Kazunori Ito, an analyst from Morningstar, expressed concerns about the future trajectory of Sony’s image sensor division. He noted, “Despite favourable currency exchange conditions, profitability remains elusive for this sector. It’s a development that merits our close observation.”

Sony reported a 31% fall in its Q1 profit on Wednesday but noted its PlayStation sales forecast has been raised, saying it now expects to sell 25 million PS5 units by March 2024, the end of its current fiscal year. That would be up from the 19.1 million units from last year.

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