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Captain_Tom said:

These hard times are gonna continue for probably another year or so at least.  There is so much fat they have to cut off of the company.  I mean why do they have dozens of cheap Smartphone models?  FOCUS ON WHAT YOU DO WELL.   Nobody bought the iPhone  5C because nobody buys an iPhone to save money!

 

Once the Fat is gone though I expect some decent profits.

Basically this. Sony made too many smartphones that weren't necessary. Also, starting from the Z4, Sony may stop revising the Xperia bi-annually and update annually which will save costs.