Xperia-Z2-AH-8

Sony To Rebuild Its Mobile Division to Focus Further On the High-End Market as it Cuts 1,000 Jobs

September 18, 2014 - Written By Kristijan Lucic

 

Despite the fact this Japan-based giant is making really solid smartphones, they seem to have problems selling them. Sony had confirmed this yesterday when they shared some numbers with the public which show us that Sony is really suffering because of poor Xperia phone sales. It didn’t take long for this Japan-based company to do something about it though, as Sony is planning to rebuild their mobile division, read on to find out more information.

Unfortunately, this means many people will lose their jobs. First stage of Sony’s plan is to fire 1,000 people, which is about 15% of mobile division’s total workforce. Sony has to do this in order to avoid further losses, it seems like they just can’t handle the competition Chinese companies like Xiaomi and Meizu are providing. Sony is unable to sell as many devices as they would like and prices which these Chinese companies bring to the table are extremely competitive. “I am deeply sorry for shareholders and I, as a president, am taking this situation very seriously. I’d like to take responsibility by finishing implementing structural reform efforts in this fiscal year and returning the company to profitability in the next fiscal year.” said Kazou Hirai, Sony’s CEO in an interview with The Wall Street Journal.

Mr. Hirai was asked if Sony intends to leave the smartphone segment entirely, which is actually hard to imagine. Sony’s CEO said that is not an option, but that Sony intends to focus on the high-end market in order to avoid going head-to-head with those Chinese companies which offer extremely competitive prices. He also added that Sony will focus on bringing more phones to the US considering they were unable to offer 1 device on all four biggest carriers over there. They currently offer devices on T-Mobile and their Xperia Z3 flagship will soon hit T-Mobile, but as I said, they were unable to cover more bases at once.

What are your thoughts on this, do you think Sony can become a significant player in US market? Do you think it’s a good idea for the company to focus on high-end devices or would you do things differently if you were in charge?