Shares in Sony sank 12% at the start of trading in Tokyo after the struggling Japanese electronics giant admitted its annual loss will be almost five times bigger than its earlier prediction.
Sony’s warning of its impending 230 billion yen (£1.3 billion) loss comes after its mobile phones were about as popular as landlines in the desert, forcing it to shed 180 billion yen from the value of its mobile division.
The firm’s Xperia smartphones have been flailing in the face of tough competition from rivals Samsung and Apple, and in the crucial US market, Sony has struggled because it has few tie-ups with carriers.
Chief executive Kazuo Hirai also said the firm would not pay a year-end dividend for the first time.
Shares in Sony fell to 1865.5 yen (1050p) apiece.
