Last week, Sony announced that they were headed for a much bigger loss than they had previously expected, with a loss of around $1.8 Billion forecast for the fiscal year ending next March. For a lot of people, this is sad news, myself included. Sony’s Xperia Z2 was easily one of the best devices of 2014 and the Xperia Z3 series only goes to buil on that great foundation. Still, it seems that Sony’s mobile division has been chasing high sales figures a little too vigorously, with more entry-level and mid-range handsets introduced than the firm can sell. So, how does Sony intend to turn things around?
Well, in their word, they’re going to restructure the mobile division, with an unfortunate loss of 1,000 jobs to go with it. Part of this restructuring will be to produce less entry-level and mid-range handsets and focus on the high-end, something that I feel would serve Sony well over the next years. I’m of the mind that a six-month release cycle concerning flagships like the Xperia Z2 and Xperia Z3 could be stretching the company a little and causing some consumers to lose faith in the brand. Whatever their course of action, it certainly seems that the entry-level and mid-range sector is something Sony wants out of.
A new report from DigiTimes brings together reports from Taiwan manufacturers that are part of Sony’s supply chain have said that the company has cut certain entry-level and mid-range handsets that were in the pipeline, a surefire sign that the company is to reduce their output in those sectors. As well, it’s said that Sony’s shipment forecast for 2014 has been downgraded from 50 Million to 43 Million, which isn’t too big of a slump, but it’s a slump nonetheless. According to sources from DigiTimes, analysts are saying that it is “unlikely” that Sony can compete against Apple and Samsung in the high-end, something I firmly disagree with. With less models in their lineup, a clean and effective marketing approach, Sony can offer something genuinely different to their customers, and I for one hope that Sony doesn’t fade away from the mobile market.