According to a release from the parent company, Sony the problem is mid-range smartphones which are not selling as well and a reduction in smartphone sales in unprofitable regions.

Affected by the downward adjustment, sales of Sony's mobile communications products will total $7.51 billion in fiscal 2016 well down on last year.  However the outfit said that it has not given up hope as it still has a a target of generating a total of $48,409,300 in profits from its mobile communication business. Apparently it will do this by focusing on high-end smartphones.

Sony Mobile shipped 3.5 million smartphones in the second quarter of fiscal 2016 (July-September 2016), down from 6.7 million units of a year ago but up from 3.1 million units of a quarter earlier.