Between its always lucrative entertainment division, thriving gaming business and fast-rising virtual reality hardware segment, Sony can definitely afford to continue bleeding money on smartphones without posting overall financial losses.
But why would it want to, when even the latest Xperia reorganization doesn’t look like it’ll yield a profit or help the company return to the global handheld manufacturer top ten by sales? Besides, the mobile industry seems to have reached its popularity peak, with stagnation or very small growth predicted across the OEM board.
Still, Sony is keen on giving it possibly one last try, trusting another business transformation will be enough to turn around flagging numbers. East Asia, including Japan, Europe and the Middle East sit at the center of the new “area strategy”, while “reductions” in the US, Brazil, India and China should scale down operating losses in said regions.
The “defocus” in the four markets doesn’t necessarily entail Xperias being altogether retired from American, Brazilian, Indian and Chinese shores, but Sony’s already pedestrian advertising and distribution efforts are to be further weakened. Finally, Latin America and “other” Asia Pacific countries will “continue to generate and maintain steady profit”, the company believes, as it intends to “preserve” its smartphone business around those parts.
Source: Xperia Blog