Sony has done it: After years of losing deals, the company’s Xperia department is surprisingly profitable again. After an extensive shrinking course, the costs should be so extremely reduced that the mobile phone business is worth it again. But cell phones have not become more popular as a result.
Sony: Xperia phones profitable again
Sony assumes that after a long dry spell, the smartphone business will finally make a profit again this year. In a forecast that extends into April 2021, there is no longer any talk of negative business. An almost traditional cross-financing, with which the Xperia division is kept alive, should not exist, at least in this financial year.
Sony’s success is probably less due to a rush of previously unknown proportions on the company’s cell phones, but rather to the self-imposed shrinking cure. Departments were either closed entirely or merged with others, and even social media activities were bundled to save even more money. Sony had repeatedly affirmed that they wanted to continue building cell phones. Since other parts of the business are doing extremely well financially, the Japanese group was able to continue to afford the loss-making smartphone division.
Like many other traditional manufacturers, Sony has been increasingly overwhelmed by cheaper competition from China. Only in the home market of Japan is there still a decent market share of 9.7 percent. Apple, with a share of almost two thirds, is unattainable in first place. In Germany, Xperia cell phones are much less relevant, according to StatCounter the market share is currently 1.4 percent.
You can see what the new Sony Xperia 1 II has to offer in the video here:
Sony: is the Compact range coming back?
Sony wants to score especially in the 5G area and has already presented the Xperia 1 II. Significantly cheaper than the 1,200 euros for the flagship, on the other hand, could be a compact version, which may be reissued in 2021. The top cell phone of the coming year should not only be available in a standard and premium version, but also in a variant with smaller dimensions. A year ago the group had actually said goodbye to it, now a comeback could be in the house.