Sony’s smartphone prospects aren’t so good

Apr 30, 2015 12:33 GMT  ·  By

This year, Sony already released an entire host of smartphones, including the flagship Xperia Z4, which will go on sale only on the Japanese market. And the company is said to be prepping another flagship device for the international market, but could it be that all these efforts will be for naught?

It’s a big possibility, considering Sony’s most recent financial report. Even if overall the company manages to maintain afloat, bringing in operating profits of $571 / €509 million in the quarter that ended last month, its smartphone division, which is of interest to most of us, is still on shaky grounds.

Still, Sony reported scoring an 11% increase in terms of sales compared to the same period in 2014. This outcome has been attributed to beneficial sales and an improved device portfolio with an emphasis on higher end models. But even so, all news is not good.

Sony expects to lose money once again

Sony says it expects to see revenue amount to $11 / €9.82 billion for the remaining period of 2015 and the first three months of 2016. But these numbers constitute a drop of 7.1% when compared to the same period of last year.

Even if the monetary loss isn’t as high as it was last year, the Japanese phone maker still expects a loss estimated at $328 / €292 million for the fiscal year that will end on March 31.

Sony’s latest Xperia Z4 flagship didn't impress the audiences all that much. The company was accused of performing a minor incremental update, when compared to the previous Xperia Z3. Customers were hoping for a new design, although that’s rumored to be the case for the Xperia Z5, which already leaked online a few times.

Back in January, a report surfaced citing the company’s CEO Kazuo Hirai saying that he was prepared to take some drastic measures in order to keep the company from sinking.

A scenario was outlined where Sony would be forced to sell off its smartphone or TV business, just like it did with its iconic VAIO laptop brand.

The company’s management admitted that “no business is forever,” so a time might come when Sony ceases all smartphone manufacturing processes and chooses to focus on its camera or gaming console businesses.