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Despite slumping sales, Sony says they're still on target for an operating profit. 2016 was not a good year for Sony's smartphone division. The company  closed out the third quarter of its financial year by shipping 5.1 million Xperia smartphones — down from 7.6 million in 2015 over the same quarter. Sony CFO Kenichiro Yoshida explained this 35% decrease in year-on-year sales was due to weaker sales in Europe, which is typically one of the more popular markets for Sony smartphones. In response, the company has downwardly revised its annual smartphone unit sales forecast by 2 million units. Image credit: Xperiablog Sony ended the quarter generating 249 billion yen (US$2.1 billion) in sales — down from 385 billion (US$3.4 billion) in 2015. But while sales and revenue income were down, the impact was partially offset by cost reductions in unprofitable markets such as Latin America and the Middle East, along with a positive impact from foreign exchange rates. As such, Yoshida

Amazon .com Inc forecast an unexpected dip in operating profit for the current quarter, sending shares down more than 4 percent due to concerns about the costs of investments including new warehouses and video content. The world's largest online retailer also reported lower-than-expected fourth-quarter revenue and missed Wall Street targets for its closely watched cloud computing unit. The Seattle-based company is spending heavily to take greater control of package delivery and to expand its video service around the world. Key to its plan is to entice sign-ups for Amazon Prime, its $99-per-year shopping club, which has led to users buying more goods, more often. "The story is an investment story," said Amazon Chief Financial Officer Brian Olsavsky on a conference call with reporters, noting "stepped-up" spending levels have continued into 2017. GlobalData Retail analyst Anthony Riva warned of profit erosion. "Low cost and fast delivery are a fundamenta