Sony may exit smartphone market

Tokyo: If you are a lover of Sony phones, we have a bad news for you. The Japan-based electronics company is likely to exit from the smartphone market due to sharply reduced profits.

Sony CEO Kazuo Hirai had said that it “would no longer pursue sales growth in areas such as smartphones.” Kenichiro Yoshida, who also became CFO last April, said this month that there were no “sacred” businesses. Some investors and analysts are speculating that Sony may gradually exit from mobile phones if sales continue to fall. Both Mr Hirai and Mr Yoshida have been honing Sony’s focus on niche markets where sales have been strong, such as the PlayStation videogame network and the camera image sensors, while cutting back on loss-making products such as TVs and smartphones.

Analysing the reason for Sony’s exit, a leading magazine said “Sony’s hardware and cohesive vision of a smartphone platform running Android has led to some of the most critically acclaimed smartphones running Google’s mobile operating system. However, Sony’s plans to focus on mid-range priced phones, instead of high-end smartphones — led to lower financial viability of the Xperia division. A report claimed that Sony has reiterated that it will focus on areas of the business that are generating profits and have growth potential, and reduce risk and volatility.

Experts who track Sony, however, feel that it may be ready to sell or partner with some one for the Xp-eria division.