Sony To Leave the Smartphone Market

After suffering from sales competition with industry leaders like Apple and Samsung electronics, as well as cheaper Asian manufacturers, Sony Corporation will no longer offer smartphones in the market.

On Wednesday, the company’s CEO and President Kazuo Hirai said that Sony “would no longer pursue sales growth in areas such as smartphones”, according to a report by Reuters. In order to boost its profit by 25 fold within three years, the company will be focusing on videogames, camera sensors, and entertainment.

Hirai also added that the company might consider the possibility of finding partners or selling its mobile phone and TV units.

Sony’s series of moves earlier have indicated signs that it will already abandon its plans for the Xperia division. Previously, flagship devices were released on a semi-annual basis but this has been changed to a yearly cycle. Moreover, the company has announced thousands of job cuts.

A report by Forbes indicated that Sony’s launching of a high-specification handset in the midrange market in 2014 was not exactly a good move for the company. The brand was not able to stand out in that kind of market because of its highly localised sales and limited marketing.

Currently, the Japanese company is in the middle of restructuring. This time, Sony’s units will be given more freedom to make their own business decisions.

“The strategy starting from the next business year will be about generating profit and investing for growth,” Hirai disclosed.