A logo of Sony Corp is pictured at an electronic store
A logo of Sony Corp is pictured at an electronic store in Tokyo May 14, 2014. Sony Corp said on Wednesday it expects to log a 50 billion yen ($489 million) net loss this financial year, its sixth in seven years, and plans additional restructuring measures that include its loss-making PC operations. REUTERS/Toru Hanai

Sony has announced the financial results for the second quarter of this year. According to PhoneArena, Sony has a suffered a loss of 85.6 billion yen which equates to 760 billion USD (870 billion AUD). In September, it became official that the smartphone business of the Japanese tech giant is not doing well because it has been facing consistent losses.

To be precise, the Mobile Communications wing of Sony has calculated a loss of 176 billion yen, which equates to 156 billion USD (178 billion AUD). On the other side, the other businesses of Sony have posted profits. For instance the Devices wing, which includes selling camera sensors to leading smartphone makers like Apple and other firms. According to GSMArena, the official loss amount is nearly half of what was expected by the analysts.

According to PhoneArena, Sony wants to take over the third position for world's largest smartphone manufacturer. However, Sony has only managed to sell 9.9 million handsets in the previous quarter, which is not good for the company to fulfill its ambitions. The Xperia handsets with high-end specs are performing well in the market but the mid-range models are not that popular.

GSMArena claims that Sony has declared that it will not sell smartphones in China where Xiaomi is immensely popular. It will be concentrating more on building relationships with the network service providers.

Sony also reported that 3.3 million units of the PlayStation 4 gaming console was sold in the second quarter, which will allow the Japanese tech giant to further its lead over its competitors Microsoft. As mentioned before, the Sony image sensors are used by popular brands like Apple and Samsung on their smartphones. Because there is huge demand for smartphones with amazing cameras, it recorded profitable sales of 271 million USD.

According to PhoneArena, Kenichiro Yoshida, the CFO of Sony, is still confident about meeting the target of 400 billion yen as profit in 2015. The existing CEO of Sony's Mobile Communications is going to be replaced by a new CEO on Nov. 16. Kunimasa Suzuki, who is the existing President and CEO, will also be replaced by Hiroki Totoki, who is now serving as Vice President for corporate planning, development and transformation.