As much as we all like to moan at the status of Sony’s mobile operations, the reality is that the company has been executing on a plan designed to bring the division to profitability. Sony CEO Kaz Hirai has made it no secret that any division of the company that’s not able to turn a profit could be and would be cut. Case in point: just yesterday, it was revealed that Sony would be selling their battery business which has forced the company to write down $600 million in just the past three years.

As for mobile, after years of reporting losses, the battered division was able to finally post a profit.

As you can see from the chart above, despite sales dipping just north of 50% when compared to Q2 2015, Sony was actually able to report a slim ¥400 million ($4 million) profit. That might not be much, and it’s really not, but compared to last year when it reported a $544 million loss, you can bet that at least somebody poured themselves a nice bottle of champagne last night when the numbers were released.

It’s both impressive and alarming (though part of the plan) that Sony was able to post profit, seeing how last year, Mobile was responsible for ¥280.5 billion in revenue, versus the ¥185.9 billion they posted this year. Previously, Sony had forecasted selling 20 million units in 2016, down from 29.4 in 2015, but they now believe they’ll only be able to manage selling 19 million Xperia branded phones.

For comparison, Apple just crossed selling its 1 billionth iPhone where a down quarter for them constitutes selling 40 million phones. For Sony, that’s the most they’ve ever sold in a year. I’ve argued this many times but you can only cut so much and Sony in the next year will enter a phase where such low volumes, no matter how profitable each unit is, will not be able to match the costs associated with R&D and day-t0-day operations. With the less than well received Xperia X family now out, all eyes turn to IFA this fall where Sony is expected to release another flagship phone(s).