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Report: Sony might exit its smartphone business if 2016 doesn't produce a profit

Posted: , by Alan F.

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Report: Sony might exit its smartphone business if 2016 doesn't produce a profit
According to a new report, Sony Chief Executive Kazuo Hirai is giving the company's Xperia smartphone line one more year to prove itself. If the division doesn't break even, or post a profit in 2016, the executive has hinted that there are "alternative options" for Sony including exiting the business altogether. The red ink that Sony's mobile division is expected to spill this year has risen from $310 million back in April, to a more current forecast of $480 million.

Part of the problem is that Sony has been unable to gain any traction in the U.S. where it owns just a 1% market share. In it's home country of Japan, Sony's market share in smartphones amounts to just 17.5%. Another issue affecting Sony is the company's difficulties profiting from a mid-range line, since it is getting squeezed by low-cost Chinese producers.

The company's high-end Sony Xperia Z5 series has received some interest, especially the Xperia Z5 Premium. This is the first smartphone to offer a 4K 2160 x 3840 resolution (although only media is rendered in 4K, other times the screen has a 1080 x 1920 FHD resolution). But without a strong U.S. carrier partner, it remains to be seen whether Sony can turn the business around. And if the company doesn't turn things around soon, the Xperia name could end up being one for the history books.

source: AndroidAuthoritry

139 Comments
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posted on 07 Oct 2015, 10:55 3

1. KushielAOC (Posts: 31; Member since: 02 Sep 2015)


"But without a strong U.S. carrier partner, it remains to be seen whether Sony can turn the business around."

posted on 07 Oct 2015, 11:17 8

11. Bm888 (Posts: 390; Member since: 06 Jul 2015)


make a z5 premium with all specs of z5 premium. .but replace 810 with 820, include iris scanner, a stylus ,type C charger, wireless charging ..and that will revolutionise your sales

posted on 07 Oct 2015, 11:19 1

12. Bm888 (Posts: 390; Member since: 06 Jul 2015)


* z5 premium plus

posted on 07 Oct 2015, 11:26 38

20. pmsap (Posts: 78; Member since: 26 May 2015)


In the end for you to say: "damn... too expensive!"

posted on 07 Oct 2015, 13:15 1

63. neela_akaash (Posts: 1095; Member since: 05 Aug 2014)


I think he wants Z5 premium plus note pro (model)

posted on 07 Oct 2015, 14:01

71. KushielAOC (Posts: 31; Member since: 02 Sep 2015)


Honestly, If I want a high end phone I don't care about expense. Especially if your company reimburses most of your payment... I just want a payment plan to have them reimburse!

posted on 07 Oct 2015, 11:35 4

27. sgodsell (Posts: 3069; Member since: 16 Mar 2013)


It has a 5 MP front facing camera which is better then most smartphones. Also clearly you don't know about Sony's new finger print scanner. Its the first ultrasonic scanner. So your fingers can be wet, dirty, or Wear a plastic glove, and it will still scan. All other scanners would fail.

posted on 07 Oct 2015, 11:56 1

36. Commentator (Posts: 3655; Member since: 16 Aug 2011)


Sony's issue isn't a problem of specs, which already match or exceed competing flagships. Their problem is marketing and distribution. Throwing a ton of next-gen specs in a phone won't guarantee anything will turn around.

posted on 07 Oct 2015, 12:20 4

46. Finalflash (Posts: 2725; Member since: 23 Jul 2013)


They keep releasing rebranded BS on Verizon only instead of hitting up up and comers like t-mobile. They literally shoot themselves in the face every time. I think it might be a good thing if someone more capable takes their mobile division of their hands

posted on 07 Oct 2015, 16:16

92. FrankUnderwood2 (Posts: 209; Member since: 01 Oct 2015)


this!

posted on 08 Oct 2015, 17:10

131. Hexa-core (banned) (Posts: 2131; Member since: 11 Aug 2015)


It will revolutonise Sony's sales? Apple has none of the latest high-end features, yet they dominate sales!

posted on 07 Oct 2015, 11:20 18

13. KINGJUAN27 (Posts: 210; Member since: 02 Jul 2012)


This site always have something bad to say about Sony, either they only post Sony bad news or they don't post the good ones at all. What's good PA? You guys are very partial.

posted on 07 Oct 2015, 11:24 13

18. Busyboy (Posts: 528; Member since: 07 Jan 2015)


Exactly. PA is the FIRST to post bad news and LAST to post good news on Sony. It's disgusting.

posted on 07 Oct 2015, 11:29 12

23. Hallyu (Posts: 311; Member since: 21 Jul 2015)


Do you really expect good news for a company in troubled? You fanboys are very funny. Give up already and face the truth that Sony is on its way to sell its mobile division.

posted on 07 Oct 2015, 11:34 10

25. KINGJUAN27 (Posts: 210; Member since: 02 Jul 2012)


Well, that's what they made you believe. They only highlight the bad ones. Seriously dude, go study grammar or get some kimchi or something. Your opinion is irrelevant.

posted on 07 Oct 2015, 12:54 5

61. kabiluddin (Posts: 171; Member since: 28 Feb 2015)


Another quality less report brought yo by Alan F.

posted on 07 Oct 2015, 13:29

65. DoggyDangerous (Posts: 757; Member since: 28 Aug 2015)


whether the report is quality or not. SONY should exit smart phone market if they are unable to make profit. Other companies are already utilizing their components more efficiently than themself. They should more focus on those businesses where they are making good progress. Like camera sensor business.

posted on 07 Oct 2015, 11:46 25

32. maherk (Posts: 3366; Member since: 10 Feb 2012)


Exactly. They posted an article few days ago about the Z5c and how it is overheating, and when it turned out to be an overblown incident, they silently took it down without giving any real explanation or even apologizing for the bad reporting.

As someone here mentioned, PA doesn't skip on a chance to glorify Apple and bash on the others, Samsung might not get the same trashing the others get, but they surely do adore Apple and have an extreme hate to Sony.

With that said, Sony still has to get some things checked to get back to their old days.
Give us another great design(I know some will say the Z5 looks great, which don't get me wrong, it does) because people wants something new,
Make it available in the US through major network carriers
Give people a 2k screen because people still look base their purchase based on the specs sheet, mainly of its an android device.
Fire the team that is screwing your great sensors with a bad software, because it sucks when people are getting the best out of your sensors and you're not.

posted on 07 Oct 2015, 13:41 3

66. xioxas (Posts: 21; Member since: 04 May 2015)


yeah two article about sony getting deleted and our comment as well without trace and apologizing especially overheating that even the source doesn't even say heat hahaha. How can the author make that fake news without look at the source if not about hating Sony too much .now everytime i look new sony article the first thing i check is the source first

posted on 07 Oct 2015, 12:05 19

41. Xperia14 (Posts: 304; Member since: 01 Sep 2015)


Does someone take this site serious? PA is nothing but a Samsung and Apple promotoion channel. They lied about the Z2's battery results and they changed it after a couple of months like nothing happened. Same with the DxOMark article. Meanwhile, they praised the S5 for its battery life which sucked in real life. Same for the GS6 edge. I haven't tested the battery of the iPhone 6s, but I just don't believe it anymore.
The only thing they post about Sony-phones is negative bullshit like the Z5c overheating and how useless 4k screens are. Their reviews also suck. Their Z3+ review was like 3 months late and it got a bad review.

posted on 07 Oct 2015, 12:06 4

42. Ninetysix (Posts: 2316; Member since: 08 Oct 2012)


source: AndroidAuthoritry

posted on 07 Oct 2015, 12:46 17

58. SYSTEM_LORD (Posts: 312; Member since: 05 Oct 2015)


If you go to gsmarena, they tested it to be about the same as the iPhone 6. I think the iPhone 6 has a battery life rating of up to 61 hours of very light usage; the iPhone 6s got 62 hours. Phonearena is full of crap

posted on 07 Oct 2015, 13:17 4

64. Taters (banned) (Posts: 6474; Member since: 28 Jan 2013)


Don't tell that to ninety six bro. He might cry and his wool wet, despite sheep wool being water resistant.

posted on 07 Oct 2015, 12:44

56. rd_nest (Posts: 1578; Member since: 06 Jun 2010)


How is this bad news?

posted on 13 Oct 2015, 11:00

137. ratsrats (Posts: 8; Member since: 15 Oct 2013)


Umm, maybe perhaps because Sony is in trouble all the time. Don't you remember their Ericsson days? One long drift down ever since.

1st thing they should change is their name, Xperia, really? I hope they didn't pay for one of the worst names in the mobile Biz. Seriously, where'd they get this dumb name???

2nd, leverage their Playstation and Walkman (yes I said it) brands into the eco system.

3rd, stop with the non-sense bleeding edge tech. 4k only for video? Why not have the best camera on the Android side and introduce S-Log? That'll get people's attention.

4th, enough with the blocky design, I've yet to ever hear someone complement that design except to say it "looks techie".

posted on 14 Oct 2015, 07:40 1

138. Branson28 (Posts: 33; Member since: 26 Mar 2014)


1st. I've never heard one person complain about the name "Xperia" until I've seen your post just now, and I talk to a lot of people about smartphones.

2nd. Idk what you're really even talking about on this point

3rd. Wtf 4k is awesome, and making the screen 4k all the time would have caused massive battery drain which PA users can't stand! Media will look amazing on the phone. Also, I'm pretty sure the camera on the Z5 has claimed the spot of the "best on the Android side" especially since DxOMark named it the best camera in a smartphone ever.

4th. I've owned the Z2 and received endless compliments from customers (I work at AT&T) on the design of the phone. I've also heard tons of reviews say that even tho Sony keeps the same design its a great design. They typically use words such as "premium", "beautiful".

posted on 15 Oct 2015, 08:06

139. ratsrats (Posts: 8; Member since: 15 Oct 2013)


1. Uh yeah because as soon as you say Xperia the response is "uh ok (whatever)"

2. Playstation = games service , Walkman = music service
Sony being both a gaming and media company... nah forget it, too much synergy.

3. You don't get it, claiming to be the best cam is like splitting hairs these days. You need to do something very different, like S-Log in their A7S series cams. As a side note, not that there's a big difference but the S6 routinely beats it in comparison tests.

4. The Z5 looks so dated compared to any modern phone, the back looks nice but then again looks like a blocky external battery.

posted on 15 Oct 2015, 13:33

140. Branson28 (Posts: 33; Member since: 26 Mar 2014)


The problem with all of your theories is none of them work without effective marketing and promotion. I mean you can use the phone as a f**king second screen for a PS4! I know tons of gamers who would go nuts about that! But it doesn't mean s**t, because those gamers will never hear about the phone. Sony makes some of the greatest devices in the market (you just can't argue that) but don't put the strategic marketing behind them to make sure people know about them and want them. I thought the iPhone 5s looked ugly as s**t and weren't revolutionary, but those still sold millions. Whether its ugly or not, its how you present it to the masses.

posted on 07 Oct 2015, 14:35 1

73. MSi_GS70 (unregistered)


Hah I KNEW this will come !!!
Problem is NOT in chinese manufs. but that americans are brainwashed with iphne unfortunately ..
ppl here are so hypocrite they will say on sony wooow so gorgeous very niiice , but at the end of day they will quietly buy damn iphone sht ... that is the problem!
If am boss of EU I would BAN iphone in europe !

posted on 07 Oct 2015, 16:20 1

94. jove39 (Posts: 1782; Member since: 18 Oct 2011)


Not necessary...sony exit US market already.

My first two phones were sony...but never had android phone made by sony...and I won't buy until they ditch custom skin...I am sure many other android enthusiasts want just that...stock android running on best hardware...and sony could make such phone...if they want.

posted on 07 Oct 2015, 17:52

102. zeeBomb (Posts: 1733; Member since: 14 Aug 2014)


Final Fanta-sony 2016

posted on 07 Oct 2015, 18:24

105. dimas (Posts: 1818; Member since: 22 Jul 2014)


Or maybe Hirai is just pysching up his relaxed marketing division to get up their ass and to do some serious promotion. People tend to work harder if they know they're losing jobs. If mobile division close, chances are that the whole marketing team will be axed but the lower tier employees will just be placed in camera or tv dept.

posted on 07 Oct 2015, 22:42

118. kbooshps4 (Posts: 1; Member since: 07 Oct 2015)


I agree 100%, their phone gets to the U.S late and so its always outdated compared to the ones released recently. I can't just walk into any store to buy it, yes I can get it online but the majority consumer don't read up on every spec, video, detail of a phone they want.
I really hope they do well and would love to own one but they make it so difficult to buy. But its so unlikely since they never learn from their own mistakes. It boggles my mind. Premium spec just like other phones but tell when I can get it in-store, in-person where I can hold it in my beaver dam hand.

posted on 07 Oct 2015, 23:28 1

119. engineer-1701d (Posts: 3214; Member since: 13 Mar 2014)


right i mean how stupid are the people running sony mobile dev, if you dont offer the phones in other big countries like usa with ad support how can u expect to make money

posted on 08 Oct 2015, 11:08

130. michaelny2001 (Posts: 87; Member since: 01 Aug 2012)


Without it they will surely go out of business. A good spec Sony should do much better than a Galaxy or an LG as Sony is built more on premium materials rather than plastic. I rsther pay 200 and keep my ATT contract as would use them anyway instead of paying 700 and be contract free. I don't spend 700 for a laptop let alone a phone. Plus with a carrier i have 1 year warrnaty, just walk in and they will fix or replace it.

posted on 07 Oct 2015, 10:59 5

2. manzer (Posts: 30; Member since: 05 Apr 2014)


Make the Z5 available to all markets and carriers. That make a model for a carrier is stupid. Follow Samsung, Apple, and Motorola Moto X.

posted on 07 Oct 2015, 11:35 2

26. jaytai0106 (Posts: 1888; Member since: 30 Mar 2011)


If it's only that easy for Sony to get picked up by all carriers... I really hope they at least put out phones for all GSM carriers around the world.

posted on 07 Oct 2015, 11:47

33. roldefol (Posts: 4097; Member since: 28 Jan 2011)


Carrier exclusives worked great... In 2010. Sony is so far behind LG and Samsung building carrier relationships, and unlocked phones only work if they're priced to sell like the new Nexuses and Moto X.

posted on 07 Oct 2015, 23:53

120. Niva. (Posts: 417; Member since: 05 Jan 2015)


Yes, unlocked phones don't need carrier subsidies to be successful.

Carrier exclusives are more of a negative than a good thing. I would've bought a Droid Turbo if it hadn't only been available on Verizon. Sony also apparently has some models going through Verizon... I've never seen a Sony phone in the wild west (Texas.)

The one thing that I will say is that when looking at phones I want pure Android with prompt updates. Sony's UI seems mostly stock but when I tried to research this I found no information. I know they've been very late in releasing certain updates in the past though recently they sem to be doing a fairly good job at actually updating even older devices. Still, unless Sony makes a Nexus I'm really not going to be interested most likely. That's just me.

posted on 07 Oct 2015, 10:59 17

3. SamsungPhanboy (banned) (Posts: 765; Member since: 31 Mar 2015)


For Sony to reach profit

1. Show Google why they should have the opportunity to build a nexus phone

2. Slim down the bezels and try to further improve design

3. Get Samsung's exynos chip in dat thang

4. Make near sock UI

Sony has one major advantage: Sony. People here that name and it naturally speaks quality and history. They need to take advantage and really produce an innovative product that attracts people with a handsome design.

Sony, I'm rooting for ya.

posted on 07 Oct 2015, 11:09 2

7. Nathan_ingx (Posts: 3605; Member since: 07 Mar 2012)


I'm not sure, but I don't think Sony will use a Samsung made chip when Snapdragon or MediaTek is still available.
And Sony has been running near stock UI since way back man.
I don't think they will exit the smartphone business, no sir. But I'd like to see them go all in this one time.

posted on 07 Oct 2015, 11:22 4

15. Dr.Phil (Posts: 1097; Member since: 14 Feb 2011)


I am pretty sure they were given an opportunity to build a Nexus device but they turned it down. Also, if I remember correctly the Nexus 6 had a hard time producing sales.

What they should do is exit the low and midrange smartphone arena altogether and instead focus on producing a good high end range. I mean their definition of midrange is valued higher than competitors and usually with lower end specifications. That's where they get into trouble.

posted on 07 Oct 2015, 12:48 7

60. rd_nest (Posts: 1578; Member since: 06 Jun 2010)


You need to attend marketing classes my friend. None of what you mentioned means sh!t all in actual business.

1. nexus - irrelevant. Never a seller and zero traction or brand value for normal consumers.

2. That part is obviously good, but not enough. Everyone has slim bezels now, you need something more than slim bezels to sell.

3. Exynos - irrelevant, consumers doesn't even know what that thing is.

4. Stock UI - Bogus claim, consumers couldn't care less about stock. Infact people don't even understand what you mean by stock UI.

posted on 07 Oct 2015, 15:00 8

83. SamsungPhanboy (banned) (Posts: 765; Member since: 31 Mar 2015)


1. Nexus provides businesses with the opportunity to learn directly from Google to optimize their hardware to perfection for android

2. This disproves you dumb claim that "nothing

posted on 07 Oct 2015, 15:08 5

86. SamsungPhanboy (banned) (Posts: 765; Member since: 31 Mar 2015)


2.......actually means s**t in business

3. So it is irrelevant that consumers try to stay away from phones with heating issues and never want a phone that can run ridiculously smoothly thanks to having the most up to date processor?

4. Moto X - widely recognized by consumers for its simple layout and functional user experience.

posted on 07 Oct 2015, 16:38 1

97. rd_nest (Posts: 1578; Member since: 06 Jun 2010)


The queston is about selling a phone and making profit. You get that into your head first. Let me repeat that in caps:

SONY NEEDS TO SELL PHONES.

Got it?

Having a Sony nexus does nothing to sell increase their sales.

Moto X is a sales failure, you get it?

Here's a report for month of June.

http://time.com/3967880/smartphone-sales-june/

Do you see any nexus anywhere near in that list?

Here's another from April.

http://www.counterpointresearch.com/galaxy-s6-series-soars

Find any Nexus or Moto?

Doesn't matter how smooth Moto X is, it's a sales flop compared to other models.

It doesn't matter what processor the phone has, otherwise Redmi 2 won't be on that list.

posted on 07 Oct 2015, 18:50 3

108. SamsungPhanboy (banned) (Posts: 765; Member since: 31 Mar 2015)


Sony has marketing power to sell a lot of a great phone, if they make one that really entices people's interest.

When's the last time you've seen a TV commercial with a new Sony phone? They have the power to change that at any time.

Lol at you attempting to talk down to me when it's obvious you have no clue as to what you're talking about. I never once said the Moto X or the Nexus had stellar sales numbers. But dummy, if Google really wanted to market the Nexus, that phone would sell like hot cakes. Selling well isn't the intention of "Nexus." But they won't put out an ad campaign that would have any impact on sales.

And yes, even ordinary folks are starting to recognize "bloatware" on mobile phones. But if you look at sales, design sells phones, which is what I listed in my reply and you tried to discredit it.

Too bad like always, you are incredibly incorrect.

BTW, the last time you talked with me, you told me specifically not to use caps, yet here you are using them. Pot calling the kettle black.

posted on 08 Oct 2015, 02:19 1

124. rd_nest (Posts: 1578; Member since: 06 Jun 2010)


You are more retarded than I thought. Not only you are thick, you have no clue whatever crap you typing.

"if Google really wanted to market the Nexus, that phone would sell like hot cakes. Selling well isn't the intention of Nexus."

Even a platypus has more brains than you. If Google could sell more, they will sell more. You think the investors likes a company that can sell more, but doesn't?

You are one seriously deluded imbecile.

posted on 08 Oct 2015, 11:06

129. SamsungPhanboy (banned) (Posts: 765; Member since: 31 Mar 2015)


LOLOLOL holy crap you're misinformed.

It is different when you make an OS. They are not going to attempt to penetrate the sales of an already competitive market. Jeez man take a business class lmao

Never call someone else retarded again.

posted on 09 Oct 2015, 12:32

134. BLikens1619 (Posts: 65; Member since: 12 Apr 2008)


No real commercials for Sony, but plenty of air time, Just watch The Blacklist and they're using Sony Xperia phones. Just saw a Hotel Transylvania 2 trailer where Dracula was using a Sony phone.

posted on 07 Oct 2015, 18:29

107. dimas (Posts: 1818; Member since: 22 Jul 2014)


Nexus line was a never a profit making phone. Sony ui is also one of the lightest and stable android ui, if they make sock ui as you said it, it will be ugly and stinky. Nothing wrong with their device hardware, maybe just a fresh look for new users and proper marketing will boost them and I expect design changes on Z6.

posted on 07 Oct 2015, 20:35

112. pegasso (Posts: 268; Member since: 27 Nov 2011)


Sony Mobile doesn't have its own phone manufacturing facility,
perhaps that's the reason why they never have the opportunity to build any Nexus phone.

posted on 07 Oct 2015, 11:01

4. surethom (Posts: 589; Member since: 04 Mar 2009)


Please sony, release a highend/flagship phone with a slightly different look, you have launched over 30 phones over the last 3 years & they all look virtually the same the design has become boring.

Also please bring your prices down a bit if you want to sell more phones.

posted on 07 Oct 2015, 11:05

5. carlemillward (unregistered)


One does not simply exist the smartphone business, one gets sold and the name changes.

posted on 07 Oct 2015, 11:20

14. jroc74 (Posts: 5980; Member since: 30 Dec 2010)


Not sure what this means.

This is the mobile division of Sony. The division might get sold but Sony as a whole, they have too many other things for this to be their downfall.

They already got rid of their mobile app store. This might be inevitable.

HTC or Moto....I could see your point. Especially since Moto split from their mobile division in 2011.

posted on 07 Oct 2015, 11:28 1

21. carlemillward (unregistered)


I meant the mobile division, of course Sony will not disappear, their cameras, sensors and consoles are too good for that.

posted on 07 Oct 2015, 11:39

29. jroc74 (Posts: 5980; Member since: 30 Dec 2010)


Misunderstanding by me then :-)

posted on 07 Oct 2015, 11:10

8. Hallyu (Posts: 311; Member since: 21 Jul 2015)


Remember what I said before? Now allow me to get you some napkin to clean your tear, all Sony fanboys. And goodbye Sony, you're not the same in 1980s and 90s anymore, your poor tech is to blamed.

posted on 07 Oct 2015, 14:43

78. MSi_GS70 (unregistered)


bcos crpple destroyed sony u stupid idiot

posted on 07 Oct 2015, 16:35 3

96. BobbyBuster (banned) (Posts: 854; Member since: 13 Jan 2015)


Hey SuperNova, did you read PA's terms and conditions?

PA doesn't allow multiple accounts, which means that you aren't welcome here since your former account SuperNova got banned.

PS: Is your dad still keeping the position of chief janitor at Sammy?

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