Smartphone makers live in a wild and sometimes fierce neighborhood. There are the top dogs who run the streets, the sleepers and their surprises and of course, the old timers who just fade away into the sunset. Sony is a prime example of a name that once dominated the game and now, looking to make one final attempt to keep things going.
It has been years since we saw Sony on the upper echelon of the tech world. They still linger in the shadows, there's no doubt about that, but the days of the Xperia and Walkman are long gone. The Japanese conglomerate that was once the center of attraction is now shutting down its Smartphone Plant in Beijing in an effort to cut cost and "make the money-losing handset business profitable" again.
Reuters said in an article that Sony is suffering big time, with a staggering loss of 95 million yen, or $863 million for the financial year that ended last March. The company's spokesman, on the other hand, opined that the closure had no ties with "trade tensions" between the United States and China. He also declined to divulge how many employees are affected but said that Sony will now concentrate their Smartphone business to be made at a plant in Thailand.
Confirming the China closure is Android Central, who reported that Sony will cut its employees to an estimated 50%. This move to reduce manpower is an unstable push for them to be more "profitable" as they plan to sell more handheld devices. Sony is also looking to merge several businesses into one unit. These include Home Entertainment and Sound, Imaging Products and Solutions and Mobile Communications. Altogether, they will form the Electronics Products and Solutions Unit.
2020 is Sony's target year to get back on track and save the depleting profits of the company. Reuters posted that they have "no intentions to sell" as they see Smartphones to be part of a more connected world that would include automobiles and other devices. By this, Sony is still seeing things on a positive note. They are looking to be more productive and raise their market value to the growing Smartphone users. Sony only sold a meager 6.5 million handsets this financial year, and the company is focusing to erase this number, raise the bar and start fresh.
Manning the helm of the new Electronics Products and Solutions Unit is Shigeki Ishizuka, who served as the Executive Vice President and President of Professional Solutions, Services, and Digital Imaging Group. He was also Sony's Executive Vice President until July of last year. The restructuring will take effect on April 1 and will start Sony's revitalized approach to regain their composure and keep the company alive.
