Sony warns smartphone weakness will brake profit progress after first-quarter surge

By Sophie Knight TOKYO (Reuters) - Japan's Sony Corp warned it doesn't now expect to make money on smartphones this year, citing weak demand, as the consumer electronics maker said restructuring will still help it turn a profit on its TVs after 10 years of losses. As it said April-June operating profit doubled, boosted by its videogames business and a one-off asset sale, Sony on Thursday cut its smartphone sales target this fiscal year by 14 percent. Sony now expects to just break even in the business this year, down from a previous operating forecast of 26 billion yen ($253 million), and is reviewing its mid-term strategy. Samsung Electronics also flagged its own uncertain handset earnings prospects on Thursday, undercut by Chinese rivals like Xiaomi, while Sony said progress by Chinese smartphone makers was a factor in its own sales shortfall.

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