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

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

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139 Comments

1. KushielAOC

Posts: 31; Member since: Sep 02, 2015

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

11. Bm888

Posts: 517; Member since: Jul 06, 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

12. Bm888

Posts: 517; Member since: Jul 06, 2015

* z5 premium plus

20. pmsap

Posts: 105; Member since: May 26, 2015

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

63. neela_akaash

Posts: 1239; Member since: Aug 05, 2014

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

71. KushielAOC

Posts: 31; Member since: Sep 02, 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!

27. sgodsell

Posts: 6642; Member since: Mar 16, 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.

36. Commentator

Posts: 3722; Member since: Aug 16, 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.

46. Finalflash

Posts: 4061; Member since: Jul 23, 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

92. FrankUnderwood2

Posts: 243; Member since: Oct 01, 2015

this!

131. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

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

13. KINGJUAN27

Posts: 210; Member since: Jul 02, 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.

18. Busyboy

Posts: 731; Member since: Jan 07, 2015

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

23. Hallyu

Posts: 790; Member since: Jul 21, 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.

25. KINGJUAN27

Posts: 210; Member since: Jul 02, 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.

61. kabiluddin

Posts: 273; Member since: Feb 28, 2015

Another quality less report brought yo by Alan F.

65. DoggyDangerous

Posts: 1028; Member since: Aug 28, 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.

32. maherk

Posts: 6630; Member since: Feb 10, 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.

66. xioxas

Posts: 21; Member since: May 04, 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

41. Xperia14

Posts: 1193; Member since: Sep 01, 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.

42. Ninetysix

Posts: 2931; Member since: Oct 08, 2012

source: AndroidAuthoritry

58. SYSTEM_LORD

Posts: 1168; Member since: Oct 05, 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

64. Taters

Posts: 6474; Member since: Jan 28, 2013

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

56. rd_nest

Posts: 1656; Member since: Jun 06, 2010

How is this bad news?

137. ratsrats

Posts: 8; Member since: Oct 15, 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".

138. Branson28

Posts: 55; Member since: Mar 26, 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".

139. ratsrats

Posts: 8; Member since: Oct 15, 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.

140. Branson28

Posts: 55; Member since: Mar 26, 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.

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 !

94. jove39

Posts: 2137; Member since: Oct 18, 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.

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