It is increasingly difficult to sell mobiles of more than 1000 euros

Sony announces its 2020 fiscal results with details of (much) interest: they will sell roughly the same phones as in 2019 but are generating profits again, and they claim that the market for high-end smartphones is shrinking rapidly

These are not good times for Sony, which registers the worst numbers in its history in the mobile market in this 2020 course, where not only the Minato giant slows down but an entire industry that falls completely except for Chinese manufacturers and their sub-brands.

The Japanese manufacturer has fallen again in its first fiscal quarter of 2020, delivering only about 800,000 Xperia mobile units and slightly reducing the figures of some 900,000 units sold in the same period of 2019, also leaving us some quite accurate reflections about the mobile market.

The Sony Xperia 5 screen surrounded by lights

The Xperia 5, one of Sony’s latest flashy phones

It should be remembered that Sony starts the fiscal course on April 1 to be Japanese, as in the United Kingdom or India, so these details have transpired in the announcement of your financial results for the first quarter of fiscal year 2020 until June 30.

They confirm from Sony that it is impossible to forecast in a unitary way given the scenario, but having distributed 3.2 million smartphones in 2019 expect similar figures for this year 2020 further confirming to its investors that they will return to generate profits, attesting that Sony Mobile’s restructuring has taken effect.

The management of the Japanese company further states that its factories in China and Thailand continue to assemble Xperia smartphones without incident, and further acknowledge that retail sales are down globally in all sectors where they operate, including cameras, which have been one of the products that have suffered the most from the market contraction.

All the consumer electronics sectors where Sony operates have suffered declines in 2020, although the Japanese say their mobile factories are operating without incident and that the restructuring of Sony Mobile has worked to return to profits

We recommend you | Why mobiles are getting more and more expensive, and the reasons that justify it

Sony Xperia 1 II, presentation

The new Sony Xperia 1 II, probably the most elegant high-end on the market

Users are increasingly reluctant to spend the cost of a high-end

Entering fully into the part that interests us most, which are smartphones, it is important to note that Sony hasn’t sold its latest flagship globally, so this region-select launch of the Xperia 1 II has also been able to slightly weigh on its results.

Sony officials neither confirm nor deny, but they do say from Minato that “The slowdown in the smartphone market and a switch to mid-range models and moderate prices it seems a direct result of the impact of the virus “, further stating categorically that “The market for high-end smartphones is contracting”.

He speaks with knowledge of the cause Sony, which is suffering not only with its Xperia smartphones but also with the sales of its Exmor RS sensors for high-performance devices, which have fallen in sales for the first time in several years.

Sony Xperia 10, dual camera

Not only does it sell fewer high-end phones, Sony also sells fewer Exmor RS sensors

We already knew that the bulk of sales were among the most compensated mobiles in price and performance, but now it seems to be confirmed that the most important volume of units sold that the high-end is losing is going to the mid and entry ranges, with users increasingly looking for cheaper mobiles.

Sony says that the upward price trend above $ 1,000 was unaffordable and would have to stop at some point, and that consumers are beginning to be reluctant to spend those amounts, especially with very competent mid-range mobiles that also do everything a high-end can do.

We subscribe from Andro4all, as the price escalation has been enormous in recent years, with the most range premium widely exceeding 1,000 euros and some of the once flagship killers like Xiaomi or OnePlus already launching mobiles of that price level, which for both Sony and us is hardly justifiable.

And you, do you justify these prices of +1,000 euros in a mobile for a very good camera that it implements?

On Andro4all | Will we ever see 2000 euro mobiles?

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