There are reports that Sony will be shutting down its smartphone division.
Android Authority reported that Kazuo Hirai, Sony Chief Executive said that the Sony Xperia smartphone line will be given one more year to prove itself. If its smartphone division fails to earn profits or break even in 2016, it is possible that the company might opt for alternatives, which includes shutting down operations completely. Sony is expected to suffer losses of $480 in 2015, compared to the previous estimate of $310 million in April.
One cause of the problem was the company failing to get a solid hold of the United States market. Currently, it owns less than 1 percent market share in the U.S. In its native Japan, Sony's market share in the smartphone business is a mere 17.5 percent. Furthermore, Sony is struggling to earn profits from its midrange line, because of the pressure posed by Chinese companies offering cheaper handsets. Sony also has to look for a reliable carrier partner to improve its sales in the coming year.
Sony is hoping that its flagship model, the Xperia Z5, will be received better by smartphone users. The Xperia Z5 Premium particularly boasts of powerful specifications and features. It is the first smartphone to feature a 4K 2160 x 3840 display resolution. Media is presented in 4K, while the screen generally has an FHD resolution of 1080 x 1920, Phone Arena wrote.
The year 2015 has not been a very good year for Sony, as the company continued to shut down business in other areas. In July, PlayStation Mobile was closed, which featured games that were playable on PS Vita system and PlayStation certified Android devices. After July 15, no new titles were published for PSM, The Next Web reported.
In September 2015, IGN reported that the company also closed its Sony Outlet Store in Europe. The company announced that its good can be bought from its retail partners only. Users will no longer find the Sony UK homepage. The only store left in Europe at present is the Sony Mobile Store.
Times of India stated that 2016 will be crucial for Sony, especially for its smartphone business.
Hirai said that they will continue the business, provided that they are on track with the scenario of breaking even beginning in 2016. Otherwise, they will have to go with alternative options.
"I do have a feeling that a turnaround in our electronics business has shown progress. The result of three years of restructuring are starting to show. But we still need to carry out restructuring in smartphones," Hirai said.