Sony may exit the smartphone and television market to increase profits


Sony makes some very nice equipment, especially when it comes to smartphones, and I don’t think there are many people that will argue against that. However, the company has struggled to gain much market share and turn a profit in the wireless industry, partly because of intense competition on both the high and low end, and partly because of their inability to make any headway in the lucrative US market.

Sony CEO Kazuo Hirai talked about how Sony plans to get back to profitability by the end of the 2018, and those plans include leveraging Sony’s Playstation business, as well as their camera component sales and access to media like TV shows, movies, and music. However, two of Sony’s current major divisions, televisions and smartphones, are absent from that plan.

Hirai didn’t explicitly say it’s part of the company’s long term plan, but he hasn’t ruled out getting out of the mobile and TV market. Both of those industries are extremely competitive, and even when a company does manage to grab up some market share it can be tough to turn that into profit. Sony has struggled with both of those markets lately, and we’ve already seen them spin off their PC division to cut their losses, so it’s very possible that the mobile and TV sections get the same treatment.

Ultimately, Sony plans to increase it profits to about $4 billion by the end of 2018, and Hirai believes they’re on track to do that with or without those two divisions. It’ll be interesting to see how things play out, but I’d be pretty disappointed to see them leave the mobile industry altogether. There’s always a chance that they sell the division off to a third party, similar to what happened with VAIO, but it’s too early to make any guesses at this point.

source: Reuters

About the Author: Jared Peters

Born in southern Alabama, Jared spends his working time selling phones and his spare time writing about them. The Android enthusiasm started with the original Motorola Droid, but the tech enthusiasm currently covers just about everything. He likes PC gaming, Lenovo's Moto Z line, and a good productivity app.

  • Major_Pita

    Yeah, I can just that boardroom presentation. Gentlemen we are implementing a bold new plan to increase profits in our TV and smartphone divisions. Since they both lose money, all we have to do is have them stop making TV’s and smartphones…

  • K.

    It would be a shame if the stop making smartphones. I have a Xperia Z3 and for me it’s one of the best smartphones out there. Still can’t understand why so many people bye Samsung galaxy S#. The only explanation is marketing.

    • gizak

      marketing and they are not widely available on all the big carriers. I’m anxiously awaiting the Z4, but if they plan to do away with their mobile division, I might have to rule it out as my Next. At least their camera line is kickin’ ass right now.

      • K.

        Their cameras are very good. I switched recently from a Nikon dslr to the full frame mirrorless Sony a7 and it’s great.

  • ted

    I’ve been fairly interested in the new Z4 but this type of comment makes me think it likely that Sony is going to abandon its customers. And I wouldn’t buy a phone abandoned by its producer – look at Samsung, they’ve ported Android 5 even to the ancient Note 2.

    It’s not a very good strategy for Sony.