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Sony to reduce its smartphone portfolio in order to cut the costs and get back in the black

Posted: , by Peter K.

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Sony to reduce its smartphone portfolio in order to cut the costs and get back in the black
It seems that Samsung won't be the only well-known smartphone manufacturer that will consider downsizing its product smartphone portfolio throughout the upcoming years - Sony is said to be undertaking such a countermeasure as well. The reason behind this is Sony's quest to return back in the black and increase its profits, as the latest round of forecasts predict that the Japan-based giant will suffer from a $2.1-billion loss for the fiscal 2014. 

Interestingly enough, Sony's smartphone portfolio is noticeably not as populated as the one of Samsung, for example, yet such a measure appears to be necessary. Apart from downsizing the smartphone product lineup, Sony is said to be putting bigger emphasis on its imaging sensor manufacturing. It's one of the leading suppliers for smartphone camera sensors, providing many of its rivals with its CMOS production.

"We're not aiming for size or market share but better profits," claimed Hiroki Totoki, the new chief of Sony's mobile division. As a result, sales are expected to go 30% down for the upcoming three-year period, but as per Sony, this might lead to an increase of its sales by 70% and raise as much as a 1.5 trillion yen (around $12.6 billion) in pure profit.

source: Reuters via Android Central 

41 Comments
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posted on 25 Nov 2014, 06:05 3

1. vincelongman (Posts: 4164; Member since: 10 Feb 2013)


Good, Samsung and LG need to do this too
Far too many terrible low and mid range phones
They should try match the Moto G, Moto E, or those many Chinese phones

posted on 25 Nov 2014, 06:58

13. justaguy (Posts: 8; Member since: 16 Nov 2014)


samsung said that it will do that

posted on 25 Nov 2014, 07:54

26. Finalflash (Posts: 2795; Member since: 23 Jul 2013)


I like how all of these idiots are now coming to this conclusion. Instead of releasing good, well supported products once a year, they release 30 sub par products twice a year with one or two good ones in there somewhere (lost in the clutter). About time they wised up, at least now their will be more powerful releases but fewer and a greater focus on R&D for a few amazing models.

posted on 25 Nov 2014, 07:11 2

18. Martin_Cooper (Posts: 1373; Member since: 30 Jul 2013)


LG really needs to do it. Its LG G3S is priced 150$ more than Moto g 2014 and they are same specs. Not to mention moto is better value with immediate updates and build quality.

posted on 25 Nov 2014, 06:08 3

2. marcski07 (Posts: 598; Member since: 25 Apr 2014)


good luck Sony.

posted on 25 Nov 2014, 06:09 3

3. imnotascammer (Posts: 160; Member since: 22 Aug 2012)


Invest on marketing Sony. I dont know why you just cant see that as a great opportunity.

posted on 25 Nov 2014, 06:27

5. ArtSim98 (Posts: 3535; Member since: 21 Dec 2012)


And they won't even renew the sponsorship With FIFA which means they can't market throught that either...

posted on 25 Nov 2014, 07:10

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


Their problem really isn't marketing, but more on their availability. Look at Z2 for example, delay delay and more delay. Z3 got announced when some market just got Z2 for a few weeks. They need to Cut the refresh cycle for the Z series down to 1 flagship a year, because a lot of people would just be like I'll wait for another 6 months. However, at the mean time they could have jumped on another flagship device.

posted on 25 Nov 2014, 07:14 2

19. Martin_Cooper (Posts: 1373; Member since: 30 Jul 2013)


Too late, their issue was never marketing but mediocre cameras and lame ass slow updates. Plus making a new flagship every few months just pisses off the loyal customers. As much as I dislike sammy its S5 wont see a new flagship until year after with S6 which makes the value of S5 good. And note 4 doesn't count, its a different category of phones which also gets a successor a year after.

posted on 25 Nov 2014, 07:34

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


Honestly, their camera sensor is great but their image processing software is on the light side. They don't make the pictures look fancy and just make them appear what they look like. However, with price tag of $700-800 for newer flagship... it's very hard for anyone to swallow.

posted on 25 Nov 2014, 18:51

33. Venkatramanan (Posts: 309; Member since: 15 Aug 2014)


They should consider to use the full efficiency their camera sensor in SA mode since most of the users won't use manual mode frequently. The overhaul in the entire Software team is needed for them. They need to bring noticeable changes and features in their UI. Bug free updates should be released.

posted on 25 Nov 2014, 06:17 2

4. istitch (Posts: 181; Member since: 19 Mar 2013)


yes, focus on a few products that actually work, not half bake tons of them and release them into the market, quality over quantity.

posted on 25 Nov 2014, 07:00

15. amasog (Posts: 341; Member since: 22 Aug 2013)


How about quantity with quality?

posted on 25 Nov 2014, 07:29

22. mixedfish (Posts: 1154; Member since: 17 Nov 2013)


If that was possible, where do you draw the line when your cheap stuff stops becoming quality?

posted on 25 Nov 2014, 07:23

21. elitewolverine (Posts: 5121; Member since: 28 Oct 2013)


market would never know. Quality usually means $. When the majority of droids are low cost quantity phones....its not the selling point to a business to say you will have this small of the pie.

posted on 25 Nov 2014, 22:57

41. laughmi (banned) (Posts: 283; Member since: 28 Oct 2014)


Well said. Their seriously need to correct their pathetic quality to price ratio else gone.

posted on 25 Nov 2014, 06:31

6. vuyonc (Posts: 993; Member since: 24 Feb 2014)


Fat trimming and streamlining over a three year period? Good. Should be easier to focus on quality, timing and marketing!

posted on 25 Nov 2014, 06:32 2

7. HugoBarraCyanogenmod (Posts: 1048; Member since: 06 Jul 2014)


Never support Sony, better go hibernating with Toshiba Panasonic and Fujitsu

posted on 25 Nov 2014, 06:44

11. ArtSim98 (Posts: 3535; Member since: 21 Dec 2012)


HAHAHAHHAAHAHAHA xDDDDD +100000000000000

posted on 25 Nov 2014, 07:32 7

23. mixedfish (Posts: 1154; Member since: 17 Nov 2013)


This guy is a walking fool, if this article was a Xiaomi phone, he'd shove it up his a-hole for sexual pleasure.

posted on 25 Nov 2014, 18:53 2

34. Venkatramanan (Posts: 309; Member since: 15 Aug 2014)


PA should permanently ban this racist. Let him play with his useless Chinese toys.

posted on 25 Nov 2014, 22:55

40. laughmi (banned) (Posts: 283; Member since: 28 Oct 2014)


And their Mid-rangers have most s**tty tft displays ever to be seen and camera quality is much worse than chinese companies using Sony sensors. How ironic!

posted on 25 Nov 2014, 06:33

8. mawhob2222 (Posts: 219; Member since: 22 Mar 2014)


good luck Sony.....

posted on 25 Nov 2014, 06:34

9. buccob (Posts: 2523; Member since: 19 Jun 2012)


Sony still doesn't get it...

The problem with Sony is that quality is not as it used to be. Camera sensor is not a problem but compression, algorithm and processing is. Finally, marketing AND availability certainly is lacking in many places

posted on 25 Nov 2014, 07:16 2

20. Martin_Cooper (Posts: 1373; Member since: 30 Jul 2013)


Totally agree, limited availability in USA, s**tty marketing, slow ass updates, bad software optimization.

posted on 25 Nov 2014, 18:55

35. Venkatramanan (Posts: 309; Member since: 15 Aug 2014)


And bad customer support

posted on 25 Nov 2014, 06:42 4

10. theguy2345 (Posts: 1197; Member since: 24 Jun 2014)


Good. They need to do something because right now, they are a sinking ship. The quality of their phones are spectacular, they just need to market it more.

posted on 25 Nov 2014, 06:48

12. ryq24 (Posts: 698; Member since: 17 Oct 2011)


The 6 month cycle should stop and they should price their phones more competitively. People are not lining up to buy their phones!

posted on 25 Nov 2014, 06:59 4

14. Bertelgeus (banned) (Posts: 126; Member since: 15 Oct 2014)


Beauty of Android: noone makes money.

posted on 25 Nov 2014, 22:29

38. Zylam (Posts: 667; Member since: 20 Oct 2010)


LOLOLOLOL nice

posted on 25 Nov 2014, 07:09

16. itsdeepak4u2000 (Posts: 3718; Member since: 03 Nov 2012)


Their pricing, availability, 6 months flagship cycle and marketing are the major drawbacks.

posted on 25 Nov 2014, 07:35

25. mixedfish (Posts: 1154; Member since: 17 Nov 2013)


6 months flagship cycle is a norm for androids, every OEM does it but they don't label it as 'flagship. But does that make the truth OK?

posted on 25 Nov 2014, 08:08 1

27. itsdeepak4u2000 (Posts: 3718; Member since: 03 Nov 2012)


OK but for mid range phones? The price vs the features are horrible.

posted on 25 Nov 2014, 19:00 1

36. Venkatramanan (Posts: 309; Member since: 15 Aug 2014)


Agreed. Spec wise, T3 is inferior to T2 ultra but priced more. They need to price their phones properly. They need to increase internal storage capacity. (For flagship - 32 GB and Mid rangers 16 GB and low end 8GB). They need to have 1.5-2GB RAM for mid rangers and min. 1GB RAM for Low end. 1 GB for mid rangers is low as per today's standards.

posted on 25 Nov 2014, 08:23

28. tiara6918 (Posts: 2027; Member since: 26 Apr 2012)


Everything on their current xperia line is crap they need to revamp everything or else they will just keep on sinking further

posted on 25 Nov 2014, 08:53

29. kurama. (Posts: 85; Member since: 13 Sep 2014)


They should make the z4 a bit different from the previous ones because it all look the same and it's frustrating.

posted on 25 Nov 2014, 09:55

30. InspectorGadget80 (unregistered)


They need those sales for the mobile division to stay alive. their only problem is U.S. MARKETING that's where the BIG GREEN comes from

posted on 25 Nov 2014, 14:46

31. fzacek (Posts: 2486; Member since: 26 Jan 2014)


Take an example from Motorola. One low-end, one mid-range, and one high-end phone per year...

posted on 25 Nov 2014, 15:55

32. snowgator (Posts: 3558; Member since: 19 Jan 2011)


Sony is having problems with it's camera sales, audio equipment, and it's movie production studio as well. Not that any of those are losing money, but that all of those ventures are on a downward trend. None are as profitable as they were 4-5 years ago.

Sony puts out good products. I like their smartphones a ton. Looking excitedly to see what comes.

posted on 25 Nov 2014, 19:09

37. Venkatramanan (Posts: 309; Member since: 15 Aug 2014)


1. Sony needs to revamp their UI completely in order to match today's trend. Sony should have colorful wall papers like Samsung by default.
2. Before releasing any updates, The testing has to be done properly. We need bug free updates.
3. Image processing algorithms should be revamped and in SA mode full capability of the sensor should be used. (For Z1/2/3, In SA mode only 8 MP can be used now.)
4. The RAM optimization should be done properly.
5. In short Complete overhaul in the software team is needed.
6. Minimum internal Storage should be kept 32 GB for flagship, 16 GB for Mid rangers, 8 GB for low end phones.
7. RAM should be 3-4 GB for Flagship, 1.5-2 GB for Mid rangers and 1 GB for low end.

posted on 25 Nov 2014, 22:32

39. Zylam (Posts: 667; Member since: 20 Oct 2010)


Get rid of the Ui and use stock Android, update the phones right away, treat them better than Google treats the Nexi!

Make 1 Phone and 1 Tablet of incredible quality, all unibody, no ridges or anything that takes away from the shape, Just a glass slab with metal edges and price them really aggressively. Cut the 6 months half phone each time crap.

And of course water proof.

That would destroy everything else.

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