Sony to Stay in Smartphone Business for Strategic Reasons

Sony to Stay in Smartphone Business for Strategic Reasons


Many think every smartphone maker has entered this field to earn money, far from it. Say, the Japanese Sony always comes with great phones designed for every kind of customers. But its smartphones are not competitive. For example, last year it was the first to announce a Snapdragon 835-powered smartphone, while Samsung and Xiaomi were fighting to gran the title of the first position. Another interesting case, Sony was the first to come in with a 4K screen handset. We can talk about similar cases too long, but the truth is Sony doesn’t occupy an impressive market share. That’s why recently the company was asked to give up the smartphone business. But an executive revealed why they are in the industry, and why they will remain there.

Sony CEO, Kaz Hirai said in an interview with The Guardian that Sony should continue selling products to stay in the telecommunications industry. Smartphones are the future of technology. So staying there will allow them to monitor the development of the industry.

Currently, Sony is a major supplier of camera sensors for other manufacturers. This simply means its own Xperia series phones should rock in the market. But they don’t. So Kaz Hirai’s explanation why they are still there is quite reasonable:

The reason we’re doing that is not because we think smartphones are the future, but because we have to have some devices connected to a network in order to communicate. If we get out of the [communications] space, we won’t have the opportunity to play in the next paradigm shift.

It’s not about the smartphones of today; it’s more about looking beyond smartphones – at what are we going to be doing – and to be a player in this space; ideally to be a leader. For that strategic reason, I want to make sure we stay, not in the smartphone business, per se, but in the communications business.

Back in 2010, he was dismissed from his position as a lecturer at the university. This made him get another job at his friend’s digital marketing company as a blog writer. After a few years, when he was thinking the article writing is his mission, Google pushed the Panda update and affected the company and websites he was working at. (Un)fortunately and surprisingly, he got an offer to head a large knitting factory. In 2016, he got his Ph.D. and resumed teaching at the University … and writing tech-related articles following his passion.
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  • Conrad Aquilina

    There are many ways to stay in the communications sector. Heck, you don’t even need to stay in the hardware side of it.

    Sony, just make your devices less expensive, and maintain the build quality.

  • Karoon

    Admitting your failure in understanding the market will bring shame and bad luck to your family, so the Samurai way is to link the unprofitable market to a market you’ve yet to play a part in. Good Job, Sony. I hope your investors buy this version.

  • Ronnie Katsie

    He knows how to put up conseling arguments, if they just want to keep monitoring the communication business then they should sell their phones at cost price, this way we will believe him!