Sony Lets Go Of TV and Smartphones, Shifts Focus To PlayStation and Image Sensors
Sony Corp., the once giant in the tech industry, has slowly been dwindling especially in its mobile phone market with the advent of Apple and Samsung’s very rapid dominance. Moreover, the company’s TV sales have been reaping nothing but loss for quite some time, which has led the Japanese company to reconsider its sales strategy.
Sony has now planned to cut off its TV and mobile phone product lineups to reduce costs. Since one thing that Sony has a very firm grasp on is its PlayStation 4 and image sensor business, the company is going to focus on this area from now on as their primary focus is gaining profits.
“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.
Sony’s Xperia flagship phones, even with such grandiose features, somehow did not manage to gain much attraction. This has led to an additional struggle for Sony, as it tries flailing its arms in any direction it can to keep up with its profits, like partnering for the biopic of Steve Jobs recently.
Under its new three-year electronics business plan, Sony says it is focusing more on boosting the sales, by a quarter, of its video game division to as much as 1.6 trillion yen, that is a whopping $13.6 billion.
How will Sony go about that? It said that it will also follow the current trend of electronic companies selling out their personalized TVs, and video and music distribution services. This, Sony hopes, will increase the revenue per paying subscriber.
Coming to its image sensor business, Sony expects a boost in sales as high as 70 percent, which is as much as 1.5 trillion Yen. This is because Sony’s sensor sales are already pretty solid, and companies even like Apple use them in its iPhones while Chinese handset manufacturers are also rapidly adopting them.
In an event last week for its entertainment units, the conglomerate said it was aiming to lift its movie and TV programming revenues by a third over the next three years.
Shares in Sony finished 6 percent higher on hopes that the new measures show a greater sense of restructuring urgency, while the Nikkei 225 index rose 0.3 percent.
“There’s a lot of expectation for Sony now, but nothing is sure until there are results,” said Ichiyoshi Asset Management chief fund manager Akino Mitsushige. “Getting out of the mobile market is an option, but they can’t do that now, so they will need to make some fundamental changes.”