Sony Adopts Cost Cutting, Aims To Release Fewer Handsets To Achieve Better Profits
In the previous week, IBTimes had published that Samsung is planning to cut down smartphone production by 30 percent in 2015. Now, Sony is also adopting the same formulae in a bid to gain profit.
Sony is considering trimming its smartphone portfolio as the company forecasts shows that it is going to suffer a huge loss of $2.1 billion for fiscal 2014. Reuters claims that by doing this, the Japan based tech giant is only aiming to hit profit even if its sales reduce by as much as 30 percent.
Reuters further adds that the poor business performance of Xperia smartphones has significantly affected the earnings of the company. Apart from reducing its smartphone line-up, it is also going to reduce its TV portfolio.
PhoneArena states that as compared to Samsung's smartphone lineup which includes numerous handsets along with variants, Sony does not have too many handsets, but still the company is resorting to such a step to avoid further losses. Sony wants to focus more on its image sensor manufacturing business.
Sony's image sensors are used by leading mobile phone companies like Apple and Chinese smartphone manufacturers for their handsets. According to GSMArena, the sales of Sony sensors are expected to grow by 70 percent in the next period.
Hiroki Totoki who has been recently appointed as the new chief of mobile division for Sony Corp, claims that they are looking forward to earn bigger market share but they are only vouching for better profits in business segments like smartphones and TVs. GSMArena claims that it seems to be a good decision as Sony does not hold bigger market share in the smartphone segment.
Sony is not going to take immediate steps to cut down its smartphone lineup, but it certainly go ahead with it releasing more information to the public about its mobile divisions by the end of the first quarter of the coming year. So, the effects of the new business strategy adopted by Sony will be available by this time in 2015. As of now, Sony does not have any firm motive to sell its mobile division outright.