Sony doesn’t rule out exiting TV and smartphone biz
Sony is open to trying a bunch of things to return to profits. After selling the majority stake in its VAIO brand, the Japanese company recently dropped its Music Unlimited service. Next under the hammer could be the company’s TV and smartphone businesses.
While selling the smartphone business makes a lot of sense considering how competitive the market has become of late, the news about the possibility of exiting the TV business comes as a bit of a surprise. The company exited the personal computer business last year amidst growing concerns about the stability of the company itself. The TV business was spun off as a wholly-owned subsidiary, and now it’s facing an uncertain future.
“The strategy starting from the next business year will be about generating profit and investing for growth,” Hirai told a briefing, adding that Sony’s units would be given greater autonomy to make their own business decisions.
Asked about the TV and mobile phone units, Hirai said he would not “rule out considering an exit strategy”, Sony’s clearest statement to date about the possibility of selling or finding partners for these struggling units.
Sony produces some great phones and TVs, but the problem the company is facing is in selling its brand to potential customers. Apple and Samsung dominate the smartphone industry, but even Samsung is facing the heat in this market. Apple corners a majority of the profits in the smartphone industry. Even if you just consider marketshare, Samsung lost the number 1 position to Xiaomi in China, a huge consumer electronics market.
