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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: 513; 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: 513; Member since: 06 Jul 2015)


* z5 premium plus

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: 610; 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, 11:26 38

20. pmsap (Posts: 95; Member since: 26 May 2015)


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

posted on 07 Oct 2015, 11:29 12

23. Hallyu (Posts: 576; 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, 11:35 4

27. sgodsell (Posts: 4309; 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, 11:46 25

32. maherk (Posts: 4462; 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, 11:56 1

36. Commentator (Posts: 3711; 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, 12:05 19

41. Xperia14 (Posts: 744; 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: 2516; Member since: 08 Oct 2012)


source: AndroidAuthoritry

posted on 07 Oct 2015, 12:20 4

46. Finalflash (Posts: 3367; 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, 12:44

56. rd_nest (Posts: 1630; Member since: 06 Jun 2010)


How is this bad news?

posted on 07 Oct 2015, 12:46 17

58. SYSTEM_LORD (Posts: 889; 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, 12:54 5

61. kabiluddin (Posts: 207; Member since: 28 Feb 2015)


Another quality less report brought yo by Alan F.

posted on 07 Oct 2015, 13:15 1

63. neela_akaash (Posts: 1219; Member since: 05 Aug 2014)


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

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, 13:29

65. DoggyDangerous (Posts: 968; 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, 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, 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, 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, 16:16

92. FrankUnderwood2 (Posts: 243; Member since: 01 Oct 2015)


this!

posted on 07 Oct 2015, 16:20 1

94. jove39 (Posts: 1912; 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: 2275; Member since: 14 Aug 2014)


Final Fanta-sony 2016

posted on 07 Oct 2015, 18:24

105. dimas (Posts: 2424; 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 (unregistered)


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: 157; 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.

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