Sony Quadruples Its Annual Loss Forecast To $2.14 Billion

Tokyo (AFP) - Sony on Wednesday raised its forecast annual loss more than fourfold to $2.14 billion, blaming its struggling mobile phone business.

The Japanese electronics giant said it now expects to lose 230 billion yen in the fiscal year to March 2015, up from a previous forecast net loss of 50 billion yen and reflecting a drop in the value of its mobile unit.

Sony has cut expectations for sales in the smartphone business, which has been reporting operating losses, as it faces off against rivals including Apple and South Korea's Samsung.

"The new MRP (Mid-Range Plan) was modified to address the significant change in the market and competitive environment of the mobile business," Sony said in a statement.

"Under the new MRP, the overarching strategy for the (mobile) segment has been revised to reduce risk and volatility, and to deliver more stable profits.

"This revision includes changing the strategy of the (mobile) segment in certain geographical areas, concentrating on its premium lineup, and reducing the number of models in its mid-range line up."