Sony will not give up mobile production despite brutal losses
Sony will not close the Xperia Mobile division despite a loss of nearly a billion, but will rather merge it with other divisions.
- Sony’s mobile division closed the year with a loss of a billion
- It will merge instead of closing
Sony’s mobile business hasn’t been doing well for a long time, with the Sony Xperia product line selling 3.4 million units globally in the 2017 business year and only 2 million units in the 2018 business year. The trend is also evident on the financial side, with the Xperia division accounting for a staggering $ 940 million loss in recent years, which prevents Gaming, Sony’s most lucrative division, PS Vita, from stopping production recently. To avoid having to close under shareholder pressure, they’d rather put it under one roof with the TV, audio and camera product lines called “Electronics Products and Solutions”.
Even Sony’s optimistic forecasts are that its mobile business will only be able to return to profitability by 2021 at the earliest, with a 50% reduction in its budget to mitigate further losses. This is somewhat surprising in light of the 5G around our necks, which brings with it increased development and other costs, and especially in light of the fact that this partly justifies maintaining their product line. In any case, the stock market welcomed the news, Sony shares did not start to fall, but rather a 0.14% rise.