Sony, like LG, hasn’t been having the best of luck when it comes to the smartphone market. Both companies’ mobile division has been on the decline for years now and there doesn’t seem to be a light at either of these OEM’s tunnel. We can’t really blame the companies for having to shift strategies either. The smartphone market is just so incredibly competitive right now that it’s hard to find success in any segment. It has just been confirmed that Sony will “defocus” the attention of its Sony Mobile division when it comes to India, North America, South America, as well as other markets.
It isn’t surprising to see these specific regions pointed out here as Sony has had a difficult time with them. Incidentally, these markets are incredibly difficult for a number of smartphone OEMs to find success in for various reasons. The United States can be a tough nut to crack due to the stranglehold that the major four wireless carriers have on the industry. India is another tough market as it can be near impossible to compete in the price-sensitive region unless you’re manufacturing the devices within the country.
Last month we learned that Sony Mobile ended up selling 7 million fewer smartphones last year than the year before. If things continued, Sony announced they would end up having to cut its workforce by half before 2020. I don’t see this recent change stopping layoffs from happening in Sony Mobile’s future, but it could help them succeed in the countries they have found success in. We’re told that Sony will begin focusing more on locations such as Japan, Europe, Taiwan, and Hong Kong.
A shift in the focus of smartphone sales in various markets isn’t the only thing Sony Mobile is planning either. The company will also be reducing its engineering focus on the mobile industry as well as shifting R&D to communication tech and new businesses (in Sweden). Sony Mobile merged its sales and marketing functions with Sony Europe and they’re even ceasing production of products from a factory in China. This all adds up to big changes headed to fans of Sony’s smartphones in the future.
Via: Xperia Blog
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