Sony drops plans to grow smartphone sales

SonySony announced last month that it expected to record a loss of US$1.9 billion in its current business year. A significant portion of that loss was attributed to its smartphone business which has struggled against both cheaper Asian rivals and the two market leaders, Apple and Samsung. Suggestions that the company was open to the idea of spinning off its mobile division or turning it into a joint venture quickly followed. None other than CEO Kazuo Hirai confirmed those intentions today as the company focuses on more profitable units such as camera sensors, videogames and entertainment.

Speaking at a company briefing, Hirai explained, “The strategy starting from the next business year will be about generating profit and investing for growth.” He added that he would not “rule out considering an exit strategy” for struggling business units such as the Sony Mobile division as well as its television business.

While Sony is mulling such a decision, it has already decided to stop chasing sales growth for its smartphone business. In other words, it has given up on aspirations to grow this business any further. Combined with a decision to offer a smaller portfolio of new smartphones in 2015, it’s clear that Sony will become a smaller player in the smartphone space going forward.

Source : Reuters