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

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 

FEATURED VIDEO

41 Comments

1. vincelongman

Posts: 5728; Member since: Feb 10, 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

13. justaguy

Posts: 8; Member since: Nov 16, 2014

samsung said that it will do that

26. Finalflash

Posts: 4063; Member since: Jul 23, 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.

18. Martin_Cooper

Posts: 1774; Member since: Jul 30, 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.

2. marcski07

Posts: 600; Member since: Apr 25, 2014

good luck Sony.

3. imnotascammer

Posts: 160; Member since: Aug 22, 2012

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

5. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

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

17. jaytai0106

Posts: 1888; Member since: Mar 30, 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.

19. Martin_Cooper

Posts: 1774; Member since: Jul 30, 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.

24. jaytai0106

Posts: 1888; Member since: Mar 30, 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.

33. Venkatramanan

Posts: 327; Member since: Aug 15, 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.

4. istitch

Posts: 181; Member since: Mar 19, 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.

15. amasog

Posts: 552; Member since: Aug 22, 2013

How about quantity with quality?

22. mixedfish

Posts: 1561; Member since: Nov 17, 2013

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

21. elitewolverine

Posts: 5192; Member since: Oct 28, 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.

41. laughmi

Posts: 283; Member since: Oct 28, 2014

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

6. vuyonc

Posts: 1091; Member since: Feb 24, 2014

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

7. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

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

11. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

HAHAHAHHAAHAHAHA xDDDDD +100000000000000

23. mixedfish

Posts: 1561; Member since: Nov 17, 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.

34. Venkatramanan

Posts: 327; Member since: Aug 15, 2014

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

40. laughmi

Posts: 283; Member since: Oct 28, 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!

8. mawhob2222

Posts: 219; Member since: Mar 22, 2014

good luck Sony.....

9. buccob

Posts: 2975; Member since: Jun 19, 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

20. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

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

35. Venkatramanan

Posts: 327; Member since: Aug 15, 2014

And bad customer support

10. theguy2345

Posts: 1216; Member since: Jun 24, 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.

12. ryq24

Posts: 875; Member since: Oct 17, 2011

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

14. Bertelgeus

Posts: 126; Member since: Oct 15, 2014

Beauty of Android: noone makes money.

38. Zylam

Posts: 1817; Member since: Oct 20, 2010

LOLOLOLOL nice

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.