Sony might Exit from Smartphone Business says CEO Kazuo Hirai
We might have some bad news for fans of Sony Smartphones. Sony is planning a restructuring of the company to reach their goal to increase the net profit by 25x till 2018. At the moment it seems the biggest victim to the restructuring of the company will be the Sony Smartphone division.
This news is not coming totally unexpected though. Sony already had mutiple rounds of downsizing employees, they sold the VAIO laptop brand completely and spun of the Television Division.
If you have been following Sony’s development you know probably that the Sony Smartphone division has not been performing well. Especially increasing pressure from cheaper brands like Huawei and Xiaomi but of course also Samsung and Apple on the upper end have made sure the sony’s smartphones are under performing.
Especially in comparison to the super profitable Sony Playstation division, which made many analysts and stockholders wonder if Sony should not totally focus on Gaming and consoles instead other electronics and smartphones. According to Sony’s CEO Kazuo Hirai Sony will epecially focus on their more profitable areas, like the Playstation but also their camera sensors. Many smartphone manufacturers including Apple, Xiaomi and Meizu using Sony’s Sensors.
While Sony’s CEO did not state explictly that they will leave the Smartphone market, he indicated that Sony is very seriously considering the option. This would not be the first example. As mentioned above earlier Sony sold their non profitable PC division, including the VAIO brand to an investment company in Japan. Also Sony will be ending their music streaming service and rather partner with Spotify.
Can the upcoming Xperia Z4 Launch be the necesary Change for Sony Smartphones?
From our standpoint of view its definitely not the quality of Sony Smartphones that is the reason for the low sales. Sony smartphones and especially the Xperia Z series has a very high quality and performance standard. If anything we wish more consumers would try them to be convinced.
What do you think of Sony’s move? What could they do different to stay in the market? Do you think the upcoming Sony Xperia Z4 will change things up?