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Sony Shrinking Smartphone Portfolio in Hopes of Return to Profitability

By Ben Munson | November 25, 2014

Sony will be reducing its smartphone portfolio as the company realigns its mobile business strategy with the less lofty goal of returning to profitability.

According to the Wall Street Journal, Hiroki Totoki, the head of Sony’s mobile unit, said the company is no longer aiming to be the third largest smartphone OEM behind Apple and Samsung. The new goal is to turn a profit from the mobile business even if sales fall by as much as 30 percent.

The new strategy will mean that Sony reduces the number of low-end devices it builds for Asia and Europe, a move that will lead to job cuts for the company.

As the report points out, Sony’s mobile business is fairly strong in Japan, Southeast Asia and Europe but not much of a factor in major mobile device markets like China and the U.S.

Sony’s announcement of plans to shrink its smartphone portfolio comes shortly after Samsung indicated similar plans for its device lineup in 2015.

Samsung last week said next year would see the company’s smartphone portfolio reduced by as much as 30 percent. The OEM giant will renew focus on low-end devices as its mobile division experiences the lowest sales in more than three years.


Filed Under: Devices

 

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