It's bad news for Sony as the Japanese company continues to struggle with its smartphone business in the face of market dominance from Apple and Samsung.
Following an internal review, the company's mobile division was hit with an "impairment" charge of $1.7bn and recast its forecasted loss for the year to a whopping $2.15 bn.
One of the outcomes from this will be a shift in Sony's smartphone strategy, as the company puts more focus on the high-end handsets.
"This revision includes changing the strategy of the MC segment in certain geographical areas, concentrating on its premium lineup, and reducing the number of models in its mid-range lineup," the company announced in a statement.
Bad times
"This revision includes changing the strategy of the MC segment in certain geographical areas, concentrating on its premium lineup, and reducing the number of models in its mid-range lineup," the company announced in a statement.
CEO Kazuo Hirai delivered the grim news and announced that for the first time in the company's history, it would not pay a year-end dividend.
Despite positive reviews, Sony's flagship Xperia handsets have failed to gain a foothold in the market due to, among other things, poor relationships with US and Chinese carriers.
Source: Sony
