Sony carves out a niche for itself as the premium Android producer

Sony carves out a niche for itself as the premium Android producer
Many manufacturers are having trouble making money with Android. A lot of that is due to the heavy competition that forces margins to be wafer thin. But Sony seems to taking the opposite approach with its just announced Xperia Z5 line. Those who blasted Sony for being unfocused, selling the underwhelming Sony Xperia Z3+ and Sony Xperia Z4, have had to reconsider their opinion of the manufacturer. No longer will you hear rumors about Sony selling or spinning off its smartphone business.

To say that Sony re-energized itself in Berlin would be an understatement. Even though rumors of the a Sony Xperia Z5 Premium carrying a 4K resolution screen started leaking out a few days before the announcement, it was easy to be skeptical, especially since The Xperia Z3+ and Xperia Z4 continued to use the same 1080 x 1920 resolution used by Sony dating back to the Sony Xperia Z. But the unveiling of the Xperia Z5 Premium is focusing attention on Sony. And this time, the attention is positive.

As we alluded to at the beginning of this story, based on Sony's website in Europe, the company is pushing a pricing model that has the 32GB Sony Xperia Z5 Premium priced at the equivalent of $1062 USD. The Sony Xperia Z5 is priced at $910 USD with the Sony Xperia Z5 Compact listed at $834 USD. And the thing is, Sony doesn't care if the OnePlus 2 is priced under $400. Sony is not competing with the value producers and is telling the world that it is the premium Android producer.

In other words, Sony has stopped competing for business from those would buy the OnePlus 2 or the Motorola Moto X Play. Sony has carved out a niche for itself, and is looking to do business with those who don't mind spending $800 and up for a handset because they equate a high price with high quality. And while we won't know for a while if the strategy pays off, there are a lot of smartphone fanatics who are talking about Sony for the first time in two years.

source: Forbes, GSMArena

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87 Comments

1. P3rsona

Posts: 23; Member since: Aug 25, 2015

RIP Sony.

58. -Shadow-

Posts: 95; Member since: Mar 26, 2013

I have said before and will say it again, DO NOT CONVERT PRICES from europe to $ , a 690€ is 690 $ , 690£ may be 790 but no 1000+ $.

81. ferretsama

Posts: 32; Member since: Nov 27, 2014

They seem to have lowered the prices again. £429 for Z5C, £549 for Z5, £629 for Z5P. (I can't post links yet but the updated prices are on Sony store GB website)

82. P3rsona

Posts: 23; Member since: Aug 25, 2015

I guess they saw my comment.

95. An.Awesome.Guy

Posts: 636; Member since: Jan 12, 2015

72. bur60

Posts: 981; Member since: Jul 07, 2014

Yeah if its true. Those prices don't make any sense. It's 30% more expensive than in the Netherlands wtf. Euro to dollar is only 1.11. How can 600 euro turnn into 834 dollar :s

76. oister85 unregistered

Sony still alive

3. GeekMovement unregistered

If only they'd bring it to the US carriers like many other flagships.

83. roldefol

Posts: 4744; Member since: Jan 28, 2011

This. Sony has been held back in the US by a lack of carrier relationships. If you're not on AT&T and Verizon, your device may as well not exist here. Getting the Galaxy S and the G series on all carriers significantly boosted Samsung and LG. Why can't Sony do the same?

86. Subie

Posts: 2363; Member since: Aug 01, 2015

Agreed. They should at least make their products available unlocked and off contract for those who would be willing to pay full price to get them.

91. roldefol

Posts: 4744; Member since: Jan 28, 2011

The premium unlocked model is a dud here. People got conditioned on 2 year upgrades to expect to pay $200-300 for a top notch device. Americans don't have $800+ to spend out of pocket on what we still see as a disposable toy with a 2-3 year lifespan.

4. jellmoo

Posts: 2588; Member since: Oct 31, 2011

"Those who blasted Sony for being unfocused, selling the underwhelming Sony Xperia Z3+ and Sony Xperia Z4, have had to reconsider their opinion of the manufacturer." Um... Why? The Z5 and Z5 Compact are incremental upgrades at best. The Z5 Premium is a 1st gen product that's unproven and littered with risk. Why should anyone reconsider their opinion of Sony when they continue the same practices that have gotten them to this point? They simply aren't in a position to angle themselves as a "premium" manufacturer when there is little to nothing to support it. Pricing themselves out of competition against rivals that have a proven track record is an idiotic move, if this is in fact the move they go with.

12. MINDoSOUL

Posts: 322; Member since: Feb 28, 2014

Well said!. I will add to that there is a niche market out there that only wants to buy expensive phones "premium phones" in order to differentiate themselves from the average Joe. Companies that sell expensive phones like Vertu,.. and others are not that successful because they don't couple their phones with top specifications and designs. The only candidate i see that can tap to that market at the moment and be successful is Samsung if only they come up with a different design(really different)+ new line name+high specifications with outrageous pricing say (1500$+). Some would argue didn't they do that with the edge series, my answer to that it could have been if they priced it higher and altered the design more with premium materials.

5. arch_angel

Posts: 1651; Member since: Feb 20, 2015

Bring The Z5 To US Carriers And People Will Buy It Cause We Like Our Premium s**t Over Here. The iPhone Sells For These Prices And The Z5 Has A Lot More To Offer, Its Premium ,Water Proof, Great Ui, Amazing Camera, Snappy Performance, SD Card Slot, Great Battery Life (Not Proven Yet But Come On Its Sony LOL) And Sony Seems To Have Tamed The Fire Breathing Dragon That Is The 810. I Believe The Z5 Is Worth The Price Tag It Carries But I'll Wait For An In Depth Review To Conform That.

14. TerryTerius unregistered

You have spoken true words my friend, and people don't seem to understand that. Merely the reality of something being expensive gives it that air of exclusivity that makes it desirable for some people. Especially when the product is actually good and attractive. So long as the reviews back up what you said and Sony markets their products creatively and effectively they could certainly gain traction in the US. People don't mind paying for what they perceive to be a quality product, and no matter what your level of income is the people will want it. That is why Apple has been so successful. I'm trying to figure out whether or not I'll pick up the Z5 premium if it comes to the states myself, considering I just bought the galaxy s6 edge + and I use an iPhone as a business line. Thinking about switching out my either one has me antsy but I'll be damned if that Phone isn't tempting me to do it.

26. arch_angel

Posts: 1651; Member since: Feb 20, 2015

Thx And I Totally Agree With What You've Said As Well. And It Is Damn Tempting Isn't It.

28. medtxa

Posts: 1655; Member since: Jun 02, 2014

I dont mind paying premium if it for something that i really want. Still unlike the galaxy edge or iphone 6 I cant help to think the z5 is just premium wannabe. Whats with the same design over and again and 4k with questionable benefit. Maybe they improve the camera but im sure the predecessor have better performance and battery life. Oh and z5 premium is uselesly so heavy phone.

38. arch_angel

Posts: 1651; Member since: Feb 20, 2015

Z5 Is Made From Glass And Metal Same As iPhone 6 and The GS6 But Unlike Them Its Waterproof, You Can't Get More Premium Than That.

41. medtxa

Posts: 1655; Member since: Jun 02, 2014

Yeah build and design is way better than bulky plastic g4 or thick big bezeled htc m9 still the problem is its still the same design as ever.

43. arch_angel

Posts: 1651; Member since: Feb 20, 2015

True But I Don't Have A Problem With The Design. I Will However Say Sony Should Definitely Change It For Their Next Flagship Device.

66. sportsmc3

Posts: 21; Member since: May 25, 2015

What about the new motorola phone that is drop proof also?

67. arch_angel

Posts: 1651; Member since: Feb 20, 2015

Its Ugly Tho LOL.

6. bistech

Posts: 59; Member since: Jul 23, 2015

Apple iphone can be only one that must have that price because iphone is well build and it is the best phone ever.

8. arch_angel

Posts: 1651; Member since: Feb 20, 2015

LOL You Made A Funny.

7. Pattyface

Posts: 1658; Member since: Aug 20, 2014

Hmm.. That is some serious money for a phone. If they hope to sell they better get it on all carriers in the US.

9. Joshing4fun

Posts: 1245; Member since: Aug 13, 2010

$834 for the Z5 compact? I can get the Z3 compact for $384 and its not even that different.

32. ibend

Posts: 6747; Member since: Sep 30, 2014

wait for 3month, and their price will drop alot

84. Pattyface

Posts: 1658; Member since: Aug 20, 2014

See you are wrong.. The z series stays stupid expensive thru to the next phone

71. bur60

Posts: 981; Member since: Jul 07, 2014

834 for compact can't be true... Its 600 euros here max

96. An.Awesome.Guy

Posts: 636; Member since: Jan 12, 2015

In UK, it is 429 pound which is equivalent to about 650 $ . I think it will be at a similar price and as (ibend) said ,wait for several months and it will be at lower cost. After all the Z3 compact is like 1 year old.

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