Sony will not pay out a dividend this year after a $2.15 billion US loss largely due to its struggling smartphone unit.
This will be the first time in its history since being listed that the company will not pay out a dividend to investors. Chief Executive Kazuo Hirai, who promised in 2012 to revive Sony’s electronic division, envisioned success for Sony by focusing on its mobile, gaming and imaging units. The high end Sony Xperia has underperformed, with a lack of carriers in the US and a ever increasing local china makers.
Sony will most likely look at reducing the division as the company revises the strategy. Hirai said that while management feel heavily responsible Sony will retain the Smartphone as one of its 3 core electronics businesses.