Date:25/05/18

A new positioning could cause Sony to leave the smartphone market

Everyone knows that Sony has experienced a great revolution in recent years. However, this week, the company announced that these changes will be made over the next three years, showing that it sees its future in services, the component market, and licensing fees, which has led to some
 
Rumors on this issue are not coming from today – in fact, this issue has been talked about since 2015. At that time, the then CEO of the Japanese company, Kaz Hirai, said that the future not only of the cellular sector, but of every other division of the enterprise, depends on a "financial equilibrium scenario", otherwise "alternatives" can be considered. Rumors also hinted at a sale of the company's portfolio, as in the past with the Vaio notebook series.
 
This possibility has never been confirmed, on the contrary: Sony maintains its annual stream of smartphone launches. There was also the notion that this sector would generate an income below expectations, with the continuity of the movement always in the limelight. Now, according to Yoshida, it's about reducing the dependency of seasonal sectors on a continuous flow of money, eyes turn back to a possible task.
 
In a conversation with investors and the press, this Tuesday (22), the CEO talked about the pillars that will lead the company's business in the next three years. Efforts will focus on services, notably strengthening PlayStation Network, PS4's online network, providing photographic components to mobile industry partner companies, and receiving royalties, primarily from the phonographic field.
 
Evidence of this was the acquisition of EMI, which made Sony the world's largest music conglomerate with an estimated $ 2.3 billion. The growing growth of the streaming and free or subscription platforms will generate a nice cash flow for the Japanese company, as well as well-known names like Drake, Pharrell Williams, Alicia Keys, Calvin Harris and Sia.
 
There was also a realization that saddened the players and provoked discussion ̵
 
1; the PlayStation 4, in Sony's vision, is nearing the end of its life cycle. The manufacturer's vision for the console, which was introduced in 2013, is that the highlight, especially hardware sales, is over, and the focus must now be on increasing monthly usage and on better selling through digital platforms, two elements this will allow the transition when a new generation hits the market, which should happen in about three years.
Meanwhile, shrink marks on smartphones are more than obvious. In the first quarter of 2018, Sony sold about 10 million cell phones, an incredibly significant reduction, considering that in the same period of 2017, there were 22.5 million handsets. The freefall is taking place ahead of all, though current releases such as the XZ2 line are widely praised.
 
However, the future in this sense is unknown. In his remarks, Yoshida hinted at his intention to move away from consumers' gadget market, but no drastic decision was made for investors or the press. As it has in recent years, Sony remains with a puzzling silence when it comes to the ever-uncertain future of his family of smartphones.

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