Proactive Investors - Sony (TYO:6758) shares rallied after one of its worst days in Tokyo for a year as it warned of a delayed recovery in the smartphone market and a financial outlook below expectations.
The electronics and entertainment giant, a major supplier of image sensors to Apple (NASDAQ:AAPL) iPhones and others, cited sluggish demand in China and the US, adding mobile phone demand is unlikely to recover before next year.
Previously, the Japanese giant had been guiding towards a second-half pick-up.
First-quarter operating income fell by 31% due to significant declines in its movie and sensor divisions, with net income dropping 17% despite a 33% revenue increase.
The company cut its net income forecast for the year by 2% to US$6 billion, reflecting the slashed expectations for image sensors and movies.
PlayStation 5 sales were also weaker than expected from April to June.
In the US, shares opened up almost 4% at US$86.14.