Sony trims line up too!
It looks like 2015 will be a year of cutbacks as now Sony too have decided to streamline its smartphone division.
Not too long ago, Samsung announced that it has plans to reduce the number of smartphones it produces in a year, mainly due to dropping profit margins. Sony is in a similar situation too if not worse, with its mobile division posting successive quarterly losses which added up to a big chunk of the $1.2 billion net loss they posted in 2014. It has not been a good year for Sony and it looks like they will be cutting their losses by sacrificing a portion of their mobile line up. It is such a shame seeing a giant like Sony forced to cutback, more so when they are already rumors of them working on the upcoming Xperia Z4 and Z5. Sony has now embraced a new vision for 2015 where they are “not aiming for size or market share, but better profits”, as summed up by Mobile Division Chief, Hiroki Totoki.
Going forward, Sony will now place more emphasis on its other divisions that are pulling in the profits. Sony’s image sensor has been doing really well in recent times. We have seen a majority of Chinese manufacturers and even high end devices for Samsung and Apple all adopting a Sony image sensor, with an expected rise of up to 70% come 2015, raking in a cool $12.7 billion. On top of that, the PlayStation 4 has been a revenue juggernaut for Sony, projected to bring in $13.6 billion for the next quarter. With divisions like this performing amazingly, it is perhaps the logical move for Sony to streamline its mobile division and invest more in the gaming and device divisions.
We may be looking at a very different Sony next year, so0 lets hope it is for the better.