Sony’s Smartphone Business Continues to Struggle against the iPhone

Sony Corp. has reported a huge quarterly loss; the most recent report suggests that the Japanese multinational corporation has suffered seven times more loss than what it suffered same time last year. According to experts, this loss clearly shows that Sony is losing out to its biggest foe Apple Inc. and other rival groups in China.

 

SONY

The total loss faced by the Japanese company has increased to 136 billion yen, which is around $1.2 billion. The scenario is not at all good for Sony as since 2010 it has suffered loss of over 1 trillion yen; this is the poorest 5-year trail the company has ever had since its inception.

 

Sony’s CEO Kazuo Hirai, who is particularly known for the success he achieved in making the company’s television business gainful, is expected to do something for turning around its smartphone unit.

 

According to Takashi Aoki, a fund manager operating in Tokyo, Sony must immediately carry out thorough survey of markets in which its products are available. Aoki feels that the company still has a chance of making it big in the smartphone market and if it takes the right steps at the right time it will again see its smartphones resulting in regular cash flow.

 

Following this loss, Sony shares traded in Germany’s Frankfurt fell by 4.7%; this is the biggest fall faced by the company is the past four weeks. Here, it should be noted that this year, the company’s stock gained 13% in Tokyo.

 

Following the announcement of loss, the company has cut down sales forecast for its smartphones in China by 2 million units, from 43 million units to 41 million units to be more precise. In a statement issued on this matter, the company has described poor performance of its phones as the main factor forcing this decision.

 

That’s not all; there’s an even bigger announcement made by the company. Sony’s CFO Kenichiro Yoshida said that the company will be ending production of smartphone models for the Chinese market. However, production for other markets of the world will continue.

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