The smartphone business is incredibly competitive and with its share of the smartphone market falling below 1%, Sony has grouped its Xperia mobile division with its TV, audio and camera product lines. These units will be merged under a new division called Electronics Products and Solutions.
According to WCCF Tech, Sony lost almost a billion dollars last year. By fiscal year 2018, the Japanese smartphone maker would have sold only 6.5 million units, which is half the value of the previous year and one sixth of five years ago. According to IDC, more than 1.4 billion smartphones were shipped in 2018.
Instead of selling or completely shutting down its cell phone division, Sony is still not giving up on the smartphone business. In an attempt to be profitable, Sony should reduce its smartphone workforce from 4,000 to 2,000 by March 2020. In addition, the company is shutting down its factory in Beijing and shifting its production to Thailand. to reduce costs.
Sony CFO Hiroki Totoki would have previously justified Xperia's losses due to its research and development costs for 5G connectivity. It has been mentioned that Sony needs to maintain the fundamental internal research capability to create related applications. With their continued work in the business of 5G smartphones, they intend to develop 5G technology as a competence that can be used throughout the Sony group.
According to the Nikkei Asian Review, Sony will limit sales of smartphones in Southeast Asia and other areas to focus on Europe and East Asia. Although the cost of cutting seems to be a crucial focus for Sony, the brand needs to do much more if it wants to compete with companies like Samsung, Huawei and Xiaomi.
The latest smartphones, which include the Xperia 1, stand out for having a wider 21: 9 screen, but it does not seem to be enough to regain lost ground. This will not help if they continue to price their smartphones at a premium price. Even the number 1 smartphone maker, Samsung, needs to renew its Galaxy J and A series with a new Galaxy A line that offers significantly better specifications than before, at a much lower price.
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