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Sony to slash its smartphone forecast, again -- report

The company had planned to ship 50 million smartphones this year, but that figure has been falling and will drop even more, according to Bloomberg.

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Sony's Xperia Z3 has won critical praise, but it ostensibly hasn't helped boost Sony's total sales. CNET

Sony's smartphone business has failed to live up to the company's expectations, and now there's speculation the situation could get even worse.

The company will announce a cut to its annual smartphone shipment forecast on October 31 when it releases fiscal second-quarter earnings, Bloomberg reported Tuesday, citing people who claim to have knowledge of Sony's plans. This would be the second time this year that Sony has been forced to cut its smartphone shipment forecast.

The intensity of the competition Sony faces has proven extremely troubling for the company. Sony has been clear that mobile is one of the key components that will drive its business and said earlier this year that it planned to ship 50 million smartphones during its fiscal year. In July, due to competitive factors and sluggish sales, Sony was forced to cut its shipment forecast to 43 million.

To change its luck in the marketplace, Sony said earlier this year it would revise its mobile strategy and focus its efforts in "certain geographical areas, premium lineups and reducing the number of models in its mid-range lineup."

Bloomberg's sources didn't say how deeply Sony will slash its forecast, and the company has not publicly commented on the possibility of such a move.

Sony did not immediately respond to a request for comment.