After two quarters as the leader of the pack, Apple has dropped to third place in the world's largest smartphone market, says research firm Canalys.
The goal of the software maker's flagship product is to renew faith in the Windows world.
The Xperia C5 Ultra and Xperia M5 include beefy megapixel cameras on both the front and back as Sony struggles in a highly competitive smartphone arena.
But CEO Meg Whitman tells investors the software maker is entering 2015 with the "strongest portfolio" in a decade.
The forecast from BMO Capital Markets analyst Keith Bachman is up by 10.6 million units from his prior estimate, but sales for the December quarter will depend in part on China.
The situation is so bad that Sony is suspending its dividend -- the first time it won't be making a payout since it listed in 1958.
Speaking to reporters, the new Sony TV chief believes that his division can end the fiscal year in the black, despite 10 years of losses.
The game maker's strong back catalog of sports games helps the company generate strong revenue even in the absence of new releases.
Outside of Apple itself, Best Buy will be the first major US retail chain to sell the watch as Apple tries to expand its availability.
Nintendo's revenue was up 21 percent as the company tries to dig its way out of third place in the game console market.