Sony Camera Sales Down in Q3 But Up Overall in FY2024
Sony published its third-quarter financial results for the fiscal year 2024, showing overall growth in sales, revenue, and profit compared to the same period in 2023. However, operating income dropped in Sony’s Entertainment, Technology and Services (ET&S) and Imaging and Sensing Solutions (I&SS) segments, both of which concern the company’s photographic endeavors.
Sony Alpha Rumors spotted the latest financial news, which provides a peek behind the curtain at Sony. Although not perfect in every segment, Sony forecasts higher revenue and profit than expected, which has caused Sony shares to surge.
Sony is such a massive company with eggs distributed across many more baskets than the typical “camera company,” so it is not always easy to determine precisely how specific product categories fare based on Sony’s financial reports. Sony Alpha cameras are part of Sony’s ET&S segment, which saw an overall 31.2 billion yen ($204,916,670) decrease in sales in Q3 FY2024 compared to Q3 FY2023. Operating income dipped by just 100 million yen, however, which is under $660,000.
Looking at all of FY2024 so far, comprising quarters one, two, and three, Sony’s ET&S division is in the black. Sales are up 4.1 billion yen (nearly $26,950,000), and operating income is 17.5 billion yen ($115 million). However, Sony notes that the impact of foreign exchange has been dramatic, explaining the sales increase year-over-year and mostly covering the gains in profit.
Sony says that the ET&S segment’s performance has been hurt by a decrease in the sales of televisions and the “impact of deterioration of the product mix of digital cameras.” This has been a consistent trend in recent years, with the number of digital camera models decreasing across the board. Sony included, companies have focused more heavily on higher-priced models in response to changing consumer demand, dramatically impacting camera industry performance in the entry-level space, which is a continually moving target. The days of sub-$500 cameras are over, by and large.
Supplemental financial reporting breaks ET&S down a bit more. Looking at Q3 FY2024, Sony sold fewer still and video cameras compared to the same period in 2023, although the first two quarters were each better for Sony’s camera sales in 2024.
Sony’s image sensor business is big money for the company. Beyond using Sony sensors for its smartphones and cameras, Sony sells image sensors to many other brands for smartphones and dedicated digital cameras. However, in Q3, I&SS sales were “essentially flat.”
Sony cites a decrease in the sales of image sensors for mobile products, offset partially by foreign exchange impacts. Sony says that manufacturing costs have increased overall, although costs for “a new image sensor for mobile products” have decreased. Last June, Sony said it expects a 60% market share for image sensors in 2025. Time will tell if this prediction comes true.
Image credits: Sony
