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Sony may drop smartphone business if it doesn’t profit next year

Sony's range of smartphones is actually quite well received and liked by many. We know quite a few of our readers are sporting Xperia devices but unfortunately, Sony hasn't been making any money off of its smartphones for years, in-fact, it has been causing losses. Now, Sony's CEO has said that 2016 will be the make it or break it year for the company's smartphone business.

Kazuo Hirai has said: “We will continue with the business as long as we are on track with the scenario of breaking even next year onwards. Otherwise, we haven't eliminated the consideration of alternative options.”

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Sony has struggled to compete in its home country of Japan thanks to rivals like Huawei and Xiaomi, which have risen through the ranks in recent years. It is important to note that Sony has been undergoing massive restructuring over the last couple of years in an effort to cut expenses and turn the financial situation around. It's electronics business is starting to get back on the right track, though its smartphones still aren't doing too well.

In Japan, Sony holds 17.5 per cent of the market, while in the US it holds less than one per cent. However, the smartphone business may turn profitable again during the next fiscal year if enough costs are cut, according to the Reuters report. So now all that's left to do is wait and see if Sony can break back in to the smartphone market and become profitable again.

KitGuru Says: Sony makes some very nice smartphones, the trouble is, it releases far too many of them in a short space of time. Are you currently using an Xperia smartphone? Would you be disappointed to see Sony stop making smartphones? 

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6 comments

  1. I really Like Sony devices.. but I’ve been burnt one too many times by them on reliability.. I’d have one as a backup but never as a main.

  2. Look, sony is a nice phone, very premium. If sony went to the price where they first decided probably many people would have bought and used and realize how good it is. But due to the CEO’s Greed of money they raised the price for the z5. Come on. No matter how good the phone is, not all are rich enough to buy that. Huawei and xiaomi are very cheap phones but powerful,

    Like when it was about 600 usd. I was gonna buy z5 but its what 800 usd. (Estimated price range, coz its converted from php) and they have been releasing every 6 months. Try going for a year. Then they will profit.

  3. i always loved how durable my Xperia Z has been despite the abuse it has suffered from me, i find Sony products more reliable than other brands, my sisters have Samsung devices and my brother is a fan of Apple, but i doubt if their mobile devices could hold out as much as mine did if subjected to the same treatment.

    But like Anon said, not many people know how good Sony products are, mostly because they didn’t get to try them and because they’re quite expensive

  4. Nikolas Karampelas

    Sony need to make some good low end phones or drop the low end market.
    I had nothing but troubles with their phones in the range of 100-200 euros and I just never picked another sony again.

    Many people that I know had problems as well in the low range, keeping in mind that this high competitive low end market doesn’t make much profit, maybe the need to drop it to stop losing prestige.
    I mean after so many wasted money on sony low end devices I just cant trust to get something higher or something else with sony on it.

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  6. Xperia Z is the best phone in my opinion choice (good battery and durable). However, this year with SD 810 chip, I am willing to wait for Z6 with SD 820 or better chip. Keep building better phone, Sony!