We recently heard that Samsung plans to scale back their smartphone range, and now it looks like Sony has similar plans, in an attempt to return the company to profits.
According to a report from Reuters, Sony intends to cut back its smartphone range and also its TV range in an attempt to cut costs. The company is counting on growth in some areas to return to profits.
Sony’s Strategic Shift
Sony’s PlayStation 4 has been a hit for the company, and it has also been doing well with its image sensing business. They are hoping for growth in these areas over the next few years. The PlayStation 4, in particular, has seen significant success, becoming one of the best-selling gaming consoles of all time. This success is not just limited to hardware sales; the PlayStation Network and associated services have also seen substantial growth, contributing to a steady stream of revenue.
The image sensing business, which includes camera sensors used in smartphones and other devices, has also been a strong performer. Sony’s sensors are highly regarded for their quality and are used by many leading smartphone manufacturers, including Apple. This segment has been a consistent revenue generator and is expected to continue growing as the demand for high-quality camera sensors increases.
“We’re not aiming for size or market share but better profits,” Hiroki Totoki, Sony’s newly appointed chief of its mobile division, told an investors’ conference. A poor showing by its Xperia smartphones has weighed heavily on recent earnings, and Sony said more detail on plans for the unit will be unveiled before end-March.
Focus on High-End Devices
This means that we will see fewer new smartphones from Sony in 2015. The company will probably concentrate on higher-end devices, like the new Sony Xperia Z4, which is expected to launch in early 2015. By focusing on premium devices, Sony aims to capture a more profitable segment of the market. High-end smartphones typically have better profit margins compared to mid-range or budget devices, which can help improve the company’s overall financial health.
In addition to the Xperia Z4, Sony may also focus on integrating more advanced technologies into their devices. Features such as 4K displays, advanced camera systems, and enhanced audio capabilities could set their smartphones apart from the competition. By offering unique and high-quality features, Sony hopes to attract consumers who are willing to pay a premium for a superior product.
Moreover, Sony’s decision to scale back its TV range is also a strategic move. The TV market has become increasingly competitive, with many manufacturers offering high-quality products at lower prices. By reducing the number of models, Sony can focus on producing high-end TVs that offer cutting-edge technology, such as OLED displays and 8K resolution. This approach can help the company maintain its reputation for quality while also improving profitability.
Sony’s strategy to cut back on its smartphone and TV ranges is a calculated move to focus on areas where they have a competitive advantage. By concentrating on high-end products and leveraging their strengths in gaming and image sensing, Sony aims to return to profitability and secure a stronger position in the market.
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