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Sony Plans To Cut Down Its Loses By Downsizing Its Smartphone Portfolio

sony cuts 1 000 jobs as it revamps mobile division 1fd596b505

Competition in the Smartphone market has been getting stiff by the day mainly due to the new entrants from the Far East. These manufacturers have really made it difficult for established players such as Samsung and Sony in most emerging market. Most of the manufacturers from Asia are able to offer Smartphones with high-end specifications at mid range prices. This move has really forced the established players to rethink their strategies.

Samsung has already revealed that it will be cutting down its Smartphone portfolio to reduce its expenses and increase profit. Now we are hearing that Sony is following suit and is planning to reduce the number of Smartphones it unveils every year.

The news from Sony is very surprising given that Sony already has a small portfolio and reducing it does not make much sense. It will be very interesting to see what the steps the company will take in the future. Sony has some of the best Smartphones on the market but they still have problems pushing them out due to poor marketing.

Earlier this year, Sony revealed that it will be unveiling a new flagship Smartphone every six months meaning that every year it will have two flagship devices. It is still not clear if this will be affected with the downsizing but my bet is it will not. My guess at this point is that Sony will do away with its entry level and low-mid range Smartphones in favour of the high end ones. Sony has for sometime been rumoured to be leaning towards this angle but the company has not conformed anything yet.

Doing away with the entry level Smartphones will give the company a chance to focus on its high end Smartphones and hopefully turn a profit. Sony has been having a bad run the last couple of years and according to Hiroki Totoki, the new chief of Sony’s mobile division, the company is not interested with a bigger market share but rather better profits.

For now, we will just have to wait and see what the company does.

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