With Sony’s Xperia smartphones, the key to survival is now … sinking into oblivion

Tram Ho

For a long time, the smartphone business has been a red spot in Sony’s financial statements. From quarter to quarter, Xperia phones brought no profit but only made Sony worse losses.

At first glance, things seem to be getting worse and worse. In all of the last three fiscal quarters, Sony’s smartphone sales have declined by two digits compared to the same period in 2018. Sony’s own estimates show current smartphone sales in the current fiscal year (ending at the end of March. to) only about 3.5 million. This is equivalent to a 47% decline compared to fiscal 2018.

Với smartphone Xperia của Sony, chìa khóa sống sót hiện tại là... chìm dần vào quên lãng - Ảnh 1.

Sales are down, business costs are down …

But more than ever, Sony fans, especially Xperia phone fans, have reason to celebrate. In the financial statements, Sony did not forget to show off its profits of the Electronic Products & Solutions division (including smartphones, cameras, and TVs), which has “significantly increased” (14 billion yen) over the same period of 2018. given by the Japanese company is directly related to Xperia: “operating costs have decreased, especially in the mobile division”.

Even this change also helps the entire electronics segment of Sony turned from losses to profits. Japanese companies have done something rare in global business history: make a profit by reducing sales. By selling fewer phones, Sony has cut losses.

Sony fans probably won’t be surprised. In the whole of 2019, Sony launched only 5 new Xperia models: 2 high-end models, 1 mid-range model (divided into 2 “regular” and Plus versions) and 1 cheap model. Sony has also abandoned many markets, in which Vietnam “almost” became a victim (after disappearing from major retail chains, it now only trades Xperia 1 and Xperia 5 in S-shaped land: ).

It is important that the red line has become the black line, the hole has become profitable. Selling fewer phones and even leaving more markets, Xperia is no longer spending so much money on a race that Sony has clearly lost to Apple, Samsung and Chinese companies. No more burning money, Xperia probably will not bear the same fate with VAIO. The pressure that Sony has to give up on mobile will not be as heavy as it once was.

Với smartphone Xperia của Sony, chìa khóa sống sót hiện tại là... chìm dần vào quên lãng - Ảnh 2.

The “reduce sales to cut losses” strategy is a double-edged sword that could harm Sony in the future.

The battle ahead is still very long. Xperia may have survived, but how long can Sony celebrate as sales continue to decline? More and more people are touching, owning the Xperia experience … When Sony leaves (to cut losses), Sony lovers will also switch to iPhone, to Galaxy … Love then gradually becomes into oblivion when sales are getting smaller and smaller?

It will be a difficult battle. But, two, three years ago, who would have thought that Sony would ever have a successful stop-loss for Xperia? The victory of 2019 is still too small, but at least now Sony fans have the right to hope for a bright future.

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Source : Genk