Regarding inventory levels, we have thoroughly managed everything from production to sales, and we have further reduced inventory levels compared to the same period of the previous fiscal year across all our major product categories and have been able to control inventory at appropriate levels. Next is the I&SS segment. Sales for the quarter increased 2% year-on-year to JPY406.3 billion. Operating income decreased significantly by JPY27.6 billion year-on-year to JPY46.4 billion, mainly due to an increase in expenses, including depreciation and amortization expenses despite the positive impact of foreign exchange rates. Adjusted OIBDA decreased by JPY15.0 billion year-on-year to JPY107.1 billion. FY ’23 sales are expected to be JPY1.590 trillion an increase of JPY30 billion from the previous forecast, and operating income and adjusted OIBDA are expected to be JPY195 billion and JPY440 billion, respectively, an increase of JPY15 billion each.
In the smartphone product market, although we see signs that the demand decline is bottoming out in China and emerging markets, the North America market shows a significant year-on-year decline. And at this point, there is no change to our view that a recovery in the market will take place from next fiscal year. Smartphone manufacturers are incorporating larger die size sensors into their new products, mainly at the high end. And the mobile sensor market by value, driven by this is expanding as expected. Regarding the yield rate of our new mobile sensor product. We have achieved a certain level of improvement through the initial measures taken so far, and although unit shipments are increasing, the impact on profit remains unchanged from the previous assumption and is expected to push down the operating income forecast of the segment for the fiscal year by approximately 15%.
Regarding automotive sensors, the market as a whole continues to show high growth due to the normalization of the supply chain and the progress of electrification in the automotive industry but intensifying competition in the Chinese market is resulting in some of our customers capturing a low share. This, combined with the fact that the shift to higher ADAS functionality by our major customers is lower than we expected, has resulted in us slightly revising downward our forecast for the current fiscal year. Furthermore, regarding the image sensor market for industrial and social infrastructure, we have further reduced our forecast for this fiscal year, mainly due to the effects of the slow economic recovery in China. Despite these factors, by incorporating the positive impact of foreign exchange rates and additional cost reduction measures, we have upwardly revised our operating income forecast for FY ’23 for the segment.
Here, I would like to explain our current view of next fiscal year and beyond. Looking ahead to next fiscal year, although we expect the sluggish smartphone market, which is pushing — putting pressure on profits in the current fiscal year to recover, we believe that the improvement will progress slowly. Regarding the yield issue, which is another factor, putting pressure on profits, we are reexamining our processes and systems from design through manufacturing, but the impact is expected to remain into next fiscal year. Next fiscal year, deterioration from our original plan resulting from yield cost per our new mobile sensor is expected to decrease significantly from the current fiscal year to approximately 1/3. However, the production volume of the sensor is expected to grow significantly as our main model.
So we expect that the impact on profit for the next fiscal year will be approximately 70% of the impact demand on profit for the current fiscal year. There’s no change to our view that the trend toward larger die size mobile sensors will drive the overall growth of the image sensor market in the mid to long term. And that the business will steadily expand in automotive as well as in industrial and social infrastructure applications, which are expected to grow in the midterm due to labor saving and automation. Last, is the Financial Services segment. Financial Services revenue for the current quarter was JPY103.9 billion, a significant decrease of 42% year-on-year, mainly due to deterioration in gains and losses from market fluctuations associated with variable life insurance despite steady growth in insurance profitability at Sony Life.
Operating income was JPY15.7 billion, a significant JPY64.3 billion decrease year-on-year, mainly due to a deterioration in net gains and losses at Sony Life and the impact of revaluation pursuant to the application of the new accounting standard on the results of the same quarter of the previous fiscal year, as well as a JPY22.1 billion recovery of an unauthorized withdrawal of funds recorded in the same quarter of the previous fiscal year. Adjusted OIBDA decreased JPY41.8 billion year-on-year to JPY22.7 billion. Sony Life’s new policy amount significantly increased 49% year-on-year to reach JPY2.579 trillion and policy amount in force continues to steadily increase in the current quarter. Regarding the FY ’23 forecast. Based on the results of the current quarter, we are forecasting Financial Services revenue to be JPY1,210 billion, a decrease of JPY110 billion from the previous forecast.
