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...
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139 Comments

102. zeeBomb

Posts: 2318; Member since: Aug 14, 2014

Final Fanta-sony 2016

105. dimas

Posts: 3266; Member since: Jul 22, 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.

118. kbooshps4

Posts: 1; Member since: Oct 07, 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I agree 100%, their phone gets to the U.S late and so its always outdated compared to the ones released recently.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.

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

130. michaelny2001

Posts: 319; Member since: Aug 01, 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.

2. manzer

Posts: 56; Member since: Apr 05, 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.

26. jaytai0106

Posts: 1888; Member since: Mar 30, 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.

33. roldefol

Posts: 4744; Member since: Jan 28, 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.

120. Niva.

Posts: 440; Member since: Jan 05, 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.

3. SamsungPhanboy

Posts: 765; Member since: Mar 31, 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.

7. Nathan_ingx

Posts: 4766; Member since: Mar 07, 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.

15. Dr.Phil

Posts: 2257; Member since: Feb 14, 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.

60. rd_nest

Posts: 1656; Member since: Jun 06, 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.

83. SamsungPhanboy

Posts: 765; Member since: Mar 31, 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

86. SamsungPhanboy

Posts: 765; Member since: Mar 31, 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.

97. rd_nest

Posts: 1656; Member since: Jun 06, 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.

108. SamsungPhanboy

Posts: 765; Member since: Mar 31, 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.

124. rd_nest

Posts: 1656; Member since: Jun 06, 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.

129. SamsungPhanboy

Posts: 765; Member since: Mar 31, 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.

134. BLikens1619

Posts: 67; Member since: Apr 12, 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.

107. dimas

Posts: 3266; Member since: Jul 22, 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.

112. pegasso

Posts: 285; Member since: Nov 27, 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.

4. surethom

Posts: 1592; Member since: Mar 04, 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.

5. carlemillward unregistered

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

14. jroc74

Posts: 6023; Member since: Dec 30, 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.

21. carlemillward unregistered

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

29. jroc74

Posts: 6023; Member since: Dec 30, 2010

Misunderstanding by me then :-)

8. Hallyu

Posts: 790; Member since: Jul 21, 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.

78. MSi_GS70 unregistered

bcos crpple destroyed sony u stupid idiot

96. BobbyBuster

Posts: 854; Member since: Jan 13, 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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