Sony cut its operating profit estimate for the fiscal year by 31 percent, citing sharply falling prices of televisions, DVD recorders and other key products, and weak demand for chips.

The company said it now sees a group operating profit of 110 billion Yen ($1.07 billion) for the year to March 31, down from its previous estimate of 160 billion yen profit.

Hit by intense competition from Matsushita (Panasonic maker) and Samsung Electronics, Sony said DVD recorder prices were falling at an annual clip of 40 percent while flat TV prices slide 20 to 30 percent year-on-year.

"Product prices have dropped more sharply than we anticipated and we have been unable to make up for that with cost cuts," Sony said.

By: DocMemory
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