Sony Facing Stiff Competition in Smartphone Segment

22:40:00

Sony strategy to use mobility devices to bring its loss making electronic business back into profitability is taking more than expected time frame. Post buying out Ericsson share and calibrated direction of targeting Smartphone segment to garner high margin is firing back. Sony generates 60% of its mobility division revenue from Europe and Japan whereas lags in china. The first evidence of loosing grip in its home turf is successful collaboration of NTTDoCoMo with Apple to sell iPhone. Still the dominant Smartphone player in Japan, the home turf market size of Smartphone is less than 25 million and Apple huge popularity is eroding most of the competitor market share. In US market, Sony only manages to collaborate with T-Mobile which in turn post merger with Metro PCS may offer some respite for Sony to gain traction in US market. Sony CEO admitted that they are moving cautiously in oversees market such as US and China in order to achieve set goal of capturing third position in global Smartphone market. Even after launch of Xperia’s series for the classes, Sony failed to convert Apple and Samsung loyalist to switch over to Sony. In Indian market, Sony volume is too low to mark any presence as well as contribute in Sony goal of selling 42 million for FY13-14. It would be interesting to observe Sony tactical move to position their product against newly launched iPhone where the entry price range of both the products are more or less same.

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