Sony forecasts $2B loss, cancels dividends

Sony expects its annual loss to swell to $2 billion and has canceled dividends for the first time in more than half a century after writing down the value of its troubled smartphone business.

According to The Associated Press, Sony cited intense competition from Chinese rivals as it projected the net loss for its fiscal year that ends March 31, 2015.

"The Chinese smartphone manufacturers have made great strides and are expanding outside their own market, and this has caused a shift in the pricing," Sony President Kazuo Hirai said. "Meanwhile, Apple and other manufacturers are launching strong, innovative products. The changes are very rapid and dramatic."

Read more from The Associated Press.