Sony considering selling off smartphone business

SonyDespite some generally well-received smartphones, Sony’s mobile division and the entire company have been struggling of late. Sony now expects to record a loss of US$1.9 billion in its current business year with the smartphone business accounting for a significant portion of that loss.

Sony lowered smartphone sales targets several times in 2014 and is expected to bring fewer smartphone models to market this year as it looks to improve profitability. Reuters reports that Sony CEO Kazuo Hirai could go even further and sell off Sony Mobile Communications (along with its TV business) or turn it into a joint venture with a partner.

While no deals are currently on the table, one source told Reuters that “every segment now needs to understand that Sony can exit businesses.” Sony already demonstrated this last year when it sold off its its VAIO PC business to Japan Industrial Partners.

While an outright sale of the mobile division is possible, Sony could also stay in the game by partnering up with another company. This would also be familiar ground for Sony as it partnered for years with Ericsson to produce smartphones until 2012 when it bought it out to form Sony Mobile Communications.

2015 could be a transformative year for Sony Mobile. Will it still be around by this time next year or will it have been spun off or sold off? Let us know what you think.


Source : Reuters