14 DAY TRIAL // Sony's mobile division has just reported it's finally making profit after many years of bleeding money. Despite the fact that it sold much fewer Xperia smartphones in Q4 2016, Sony Mobile managed to score an operating profit of $187 million.
According to the financial report, Sony sold 5.1 million Xperia smartphones during Q4 2016, which is about 2.5 million fewer units compared to the same period two years ago.
The mobile division has been seen as Sony's black sheep for many years now, so the recent announcement comes as a nice surprise. But how is it possible to sell fewer products, but start making money, after scoring huge losses for a long time?
Well, it's quite simple: downsizing. Sony Mobile shrank its business and streamlined operations in select markets. Basically, the Japanese company is only selling its products in those countries where its brand remains competitive.
Let's not forget that the company's latest flagship, the Xperia XZ, was the best selling Android smartphone in Q4, an achievement that couldn't have been possible if Samsung's Galaxy Note 7 hadn't been recalled and its production permanently halted.
Even so, Sony managed to outsell other flagships like the Pixel/Pixel XL, LG V20, OnePlus 3T and Moto Z, which is definitely no small feat. But the bulk of the sales was probably made of Xperia mid-range smartphones, which apparently are now very appealing to customers.
The Japanese company has big plans to share with us later this month, as at least four new Xperia smartphones will be announced at Mobile World Congress (MWC) on February 27.
The only thing that remains uncertain is the reveal of Sony's flagship, which might not take place this month at the trade fair due to the shortage of Qualcomm Snapdragon 835 chipsets.
Hopefully, Sony will continue to remain competitive in the smartphone business and bring its products to more markets if the need arises.