As Sony is struggling to sell their smartphones in India, the Japanese multinational conglomerate corporation announced to the public, during the recent investor day in Tokyo, that their smartphone business will defocus on the Indian market. Not only that but the Japanese tech supergiant also stated that they are facing huge losses in the USA, China and Brazil too and thus decided to defocus in these regions also.
The main reason of Sony Corporation behind this planned business contraction is to trim down the mounting operating loss that the company’s smartphones division is facing in those respective countries. The company explained with the statistics through a report published in the Xperia Blog, “Part of the reason for this is that Sony expects FY15-17 CAGR smartphone growth from India, China, Brazil, Indonesia to be just 0.3%. This compares to Sony’s estimate last year of +8.1%, showing just how much expectations have changed in a year.”
India, Brazil, China and Indonesia are the emerging markets and holds the 45% volume of the entire smartphone market, and in these regions, Sony experienced a major slowdown. Thus Sony has decided to shift their focus to East Asian markets including Japan, in the Middle East and Europe. The tech giant is also keen to maintain their status in Latin America and other parts of the South-East Asia.
Sony, which was a leading brand in the Indian market even a few years ago, have lagged behind in the rat race of smartphone market, as many Chinese companies have entered the Indian market. Not to mention, many Indian companies have emerged during this timeframe. The Indian smartphone market is currently bossed by Samsung, along with Micromax, Lenovo (including Motorola), Intex and Lava to be followed.
Sony faced the same sort of setback in the US market too. The company failed to produce handset’s like Apple’s “iPhone 6S,” Samsung “Galaxy S7,” and even the Chinese startup company’s “OnePlus 3” and thus faced the bitter consequences.