In case you haven‘t noticed, Sony‘s mobile division is really suffering. Despite making some of the best devices out there (see our review of the Xperia Z3), their sales numbers look rather unpromising (although slightly improving) and mobile isn‘t making any money for the Japanese company.
That has led the execs to the decision in placing more focus on their profitable divisions, such as the image sensor, gaming and entertainment businesses. They attain to have an operating profit of 500 billion yen ($4.2 billion) within the next three years.
Going forward, the focus will be on profitability and not volume, with individual division heads getting more autonomy in decision making. According to CEO Kazuo Hirai:
If our initial mid-term corporate strategy was about reforms, the second mid-term strategy starting from the next business year will be about generating profit and investing for growth.
For mobile, we are expecting a reduction in the number of Xperia models on offer, as stated by the new head of mobile Hiroki Totoki last year. Sony has also said that it will look be seeking “potential alliances with other companies” in these divisions.
The TV and Mobile Communications businesses operate in markets characterized by high volatility and challenging competitive landscapes. In view of this business environment, Sony will place the highest priority on curtailing risk and securing profits in its operation of these businesses. Since both markets are experiencing intense cost competition and commoditization, Sony will strive to further increase the added value of its products by leveraging its in-house technologies and component devices.
By carefully selecting the territories and product areas it targets, Sony will seek to limit its capital investment and establish a business structure capable of securing stable profits. The Company will also continue to explore potential alliances with other companies in these areas, in response to changes in the business landscape.
Source: Sony
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