Sony recently registered a 20-year record with its sales as its annual operating profits witnessed a jump of 34 percent year on year. Apart from manufacturing products on its own, Sony also produces and supplies components to other companies.
There are times when an established company benefits by outsourcing parts or components to another company. By doing so, it manages to keep its production units thoroughly engaged and add more revenue to the company’s annual profit. There have also been instances when a company has suffered by bifurcating its business. In Sony’s case, things have worked out very well though.
One of the major reasons behind Sony recording such a huge growth is the company supplying sensors for the iPhone camera to Apple. For years now, Sony has been Apple’s primary source of iPhone camera sensors. While Apple has benefited from the quality of the sensors delivered by Sony, the latter has had good financial gains from this partnership. The high sales of Sony’s gaming console have also played an important role in the growth in the company’s annual operating profits.
According to a report published in LiveMint, Sony is hoping for an operating profit of around 940 billion Yen (roughly 8.9 billion US Dollars) in the financial year that draws to an end in March. In the last financial year, the company recorded an operating profit of 700 billion Yen. This year, it expects a higher owing as it believes the company has done very well in several areas like pictures, games, imaging unit and more. Of course, Sony outsourcing iPhone camera sensors added substantially to this growth.
The shares of the company also saw a jump of 10.4 percent in Tokyo recently. The jump in the shares leads to the company registering its biggest intraday boost since May 2019. Though the Sony PlayStation 5 was launched as recently as in November last year, it became one of the driving forces behind the company’s staggering growth in the last couple of months.
Though Sony was suffering from inventory issues at the beginning because of limited material, it still managed to go beyond its aim of producing 7.6 million units of the device. The gaming console has seen massive popularity coming its way and Sony is likely to come up with a more aggressive marketing campaign to push it further.