Low Smartphone Sales See Sharp Profit Slide

By Tom Allen
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Sharp has warned shareholders of a six-month operating loss, due to poor sales of smartphone displays (rumoured earlier this month: Sharp Cuts Smartphone Display Production), specifically in China.

For the six months ending on the 30th September, Sharp expects net sales of ¥1.3 trillion ($10.8 billion) and an operating loss of ¥26 billion ($216 million). This compares to net sales of ¥1.33 trillion ($11 billion) and an operating profit of ¥29.2 billion ($242.7 million) in the previous year.

Net sales from the 30th September 2015 to the 31st March 2016 are forecast to be ¥2.7 trillion ($22.4 billion), with an operating profit of ¥10 billion ($83.1 million). This compares to the previous forecast – announced in May – of ¥2.8 trillion ($23.3 billion) and ¥80 billion ($665 million).