Japanese electronics giant Sony has just officially revealed its plans to exit the Indian smartphone market along with six more countries. The announcement came in a post on its website after its Corporate Strategy Meeting. According to the information revealed in the post for the financial year of 2020, the company is all set to reduce its operational costs by 50 percent. To achieve this reduction in operational costs, the company is planning to exit smartphone markets in India, Australia, Canada, South America, Mexico, Africa, and the Middle East. Sony also revealed that it is planning to focus on Japan, Taiwan, Hong Kong, and Europe to aim at a smaller customer base.
According to the details behind this move, the cost-cutting is done as part of a measure to ensure that the smartphone business for the company turns profitable by the 2020 financial year. This is also the first time when the company has officially confirmed its exit after a number of reports stated that in the past. According to a report by GSMArena, the contraction of mobile business seems to be a calculated strategy on part of Sony as it tries to stay afloat. Once the company manages to save some money, then it can start thinking about other things including innovation and competition with the help of some bold products.
The current situation of Sony is not surprising as it has not been able to keep up with its rivals including Samsung, and Apple including Chinese smartphone makers that took the industry by storm including Xiaomi, Oppo, Vivo, OnePlus, and even Realme. The move was also somewhat predictable from the different market reports about the total number of devices sold or shipped where Sony did not really figure anywhere. One contributing factor to the less than ideal performance of the company was the pricing of its smartphones. Due to its expensive price, there were always better options in the market with better internal hardware.
This report comes just two months after Sony announced that it was merging its mobile division along with its TV, audio and camera divisions. According to a report, Sony is planning to use its brand power in the gaming, TV, audio and the camera division to help improve the condition of its smartphone segment.―BGR