Sony Corp shares tumbled 7 percent on Friday after its forecast for annual operating profit fell short of analysts' expectations amid unfavorable currency rates and tough competition.

Sony, which competes with Samsung Electronics Co in TVs and Apple Inc in portable music, projected a fivefold jump in annual profit to 160 billion yen ($1.7 billion), but missed market consensus by 23 percent.

The maker of Cyber-shot digital cameras and Vaio personal computers factored in a hit from foreign exchange rates as well as weaker earnings at its finance division, which operates an insurer and an online bank.

Sony shares were down 7 percent at 2,945 yen, against a 1.9 percent fall in the benchmark Nikkei average.

(Reporting by Aiko Hayashi and Sachi Izumi)