Sony cuts forecast due to huge ‘mid-range’ mobile writedown

by XB on 17th September 2014

in News


Sony-LogoSony has slashed its full-year forecast and has no plans to pay a dividend following a massive 180 billion yen ($1.7bn) impairment charge to the mobile segment. This impairment of goodwill comes as Sony has revised its “Mid-Range Plan” in the mobile segment.

Sony began a review of its mid-range Xperia portfolio at the end of July citing “increasingly competitive markets in various areas.” The new plan for Sony’s mid-range Xperia segment is forecast to deliver much lower cashflows, which is why Sony has impaired the business.

Interestingly, the new strategy in this segment “has been revised to reduce risk and volatility, and to deliver more stable profits.” The outcome is a change of strategy in “certain geographical areas, concentrating on its premium line-up, and reducing the number of models in its mid-range line-up.”

Hindsight is a wonderful thing, but many could foresee the issues that Sony has ended up with. Currently it is not competitive on its mid-range portfolio and recent news regarding the EoL software status for handsets that only arrived last Summer, won’t endear those customers to the Sony brand.

There’s no doubt Sony has a lot of work to do – reducing the number of models and concentrating on those is a good start – but greater transparency over lifetime support is also needed to get the trust back. Thankfully, the premium Xperia segment, hasn’t been mentioned in this writedown, so we assume that everything is on track in this segment.

Via Sony.

Thanks Hendra and Max!

  • techielover

    It is probably the volatile and the best option for Sony to let people understand what exactly the Sony brand is know for !!

  • darannechelle

    New design!! Like xperia S comeback. Still im buying the compact tablet!! Do somethin sony. I sony want you to lose

  • Max

    A correction, Sony are not paying an interim dividend but will still pay $130m out as a full year dividend.

  • Denislav Popov

    “…reducing the number of models in its mid-range line-up.” This. Reducing the number of released devices is a key factor to keep Sony brand somehow exclusive. IMO they should do the same in the high-end level handsets as I think that two flagships per year is too much, we don’t see lots of upgrades when comparing Z2 and Z3 eventhough they are great phones to me. A tablet, mid-range(or two), flagship and its compact version per year, is what I see as best.

  • XperiaBlog

    This is from the Sony site: “Sony Corporation (the “Corporation”) decided, at the meeting of its Board of Directors held today, that no interim dividend or year-end dividend of common stock of the Corporation for the fiscal year ending March 31, 2015 will be paid.”

  • Giannikosmo

    Sony just stop releasing a flagship device twice a year and I’m sire your sales will rise! This is a bad tactic and you know it!

  • Ayman F. Herzallah

    Good hardware and design, bad camera algorithms

  • Max

    Yes, that’s the interim dividend. Japanese companies pay two dividends a year. On after Sox months (interim) and one at the end (full year). Sony are still going to pay the full year dividend of ¥13.1bn yen. I don’t think they have paid an interim dividend since 2010 so this isn’t really a surprise.

  • Vuyo Ncube

    Make just one solid reliable midranger for 2015. A snapdragon 610 SP successor to complement the Android L release would be nice. The less money you waste, the lower you can price it (well, I’m oversimplifying). 2GB RAM, refreshed 13mp camera, stereo speakers with cool notification light and cheap and cheerful design language.

  • Vuyo Ncube

    You didn’t read the article, did you?

  • Jaywalker

    They have a lot to do but I believe that if they didn’t do it by now, I don’t think they will from now on. So it’s a matter of time until they will sell the mobile division. To whom? But to the chinese. Huawei is already in top 5. Sony is to “others” so…Updates, bezels, high prices, flaws etc things that people are telling about for 3 years now. And for nothing.

  • Jaywalker

    UPDATE: Not to mention the camera: noisy pictures, low sound on video, stabilizer useless etc.

  • Ayman F. Herzallah

    Actually they pretty much deserve it, judging by the fact that their mid-range smartphones have near identical specs. Sony is flooding the market with
    phones instead of trying to be innovative and fixing things their fans always wanted, like bad camera algorithms, slow updates not to mention that with every update the phone becomes slower and have more lags and freezes.
    Also two flagships that don’t have much differences in one year is also stupid.

  • XperiaBlog

    Yep, first time Sony has cancelled the dividend in 56 years…

  • mullawi

    Sony need to lower their prices to make the models more attractive on the market. Include the Sony case, chargning station, headset and screen protection with the phone och tablet instead of selling it for 50-100 euro so people feel that they get value for the money instead of the feeling of having to buy more stuff for the phone. Sony cannot take premium prices for their Android stuf.

  • Prateek Bhanushali

    As per you say that Sony’s mid range has similar specs(Snapdragon 400), I thing every company out there is doing the Same. And again, the two flagship a year is a good Idea to refresh the the phone and boost the sale with improving the quality with profit re-investment system !!!

  • mullawi

    Yes. And the stuff you buy for one modell dont work with a new Sony modell so you have to buy all new when upgrading to latest modell. Cases and charging station should work with all coming Z-modells when they take premium prices for that stuff.

  • SFL

    read dude.. youre pertaining to flagship not the middle range.. zz

  • Soj Varghese

    Sony you just release one low end, 2 midrange one flagship, one compact, one phablet, 2 tablet with stunning design, specification and reasonable prices and support for one and half year with good customer service, you will be a great profitable company like apple.

  • jr

    I agree Snapdragon s600 should be a mid ranger, atleast a 13 mp camera a front speaker just like z2 and don’t forget the ips screen and a great battery life. Microsd is a must. That’s a mid ranger!!

  • r41nier

    I think Xperia M2 could be better for its price. At least a 720p screen and better speakers. Surely the Moto G is a better phone than the M2.

  • jr

    Moat I agree but they need to release atleast 2 low end phone and a 2 low to mid range phone cause if you check some sony phone most of the low end to mid range are their test products. Example before z released they test the product xperia go a nice water proof phone. In short, they targeting almost all consumer class
    A,b,c and d.

    Low end should be a media tek
    Low to mid end maybe media tek octa core or Snapdragon s400 with a maximum ram capacity or which ever is faster
    Mid ranger should be s600 or s800 with atleast 12 mp back camera
    High end should be a compact, 5 inch to z3 screen level most, a next generation z ultra to compete note series and a tablet. Z ultra and tablet should be qhd ips.

    And dont forget their basic formula water proof, microsd, ips screen and a great battery life. Additionally, update all their products.

    I think that’s might solve their problem less

  • roeshak

    Reduce the number of devices in your premium line up too! That’s all I have to say to Sony. Too many bleeding phones, all of them offering a very similar package to each other.
    Anyway mid rangers don’t really have a future. Most with mid range budgets will increasing look to the nexus line and the slew of premium specced offerings from China.
    I know that’s what I’d do if I had a mid range budget, certainly wouldn’t be giving it to Sony for the likes of the xperia m2 and t2 ultra. I’d spend it on the more capable nexus 5/6 or the one plus, or something else from Huawei with better specifications.

  • Guest

    this makes me sad

  • Alaa

    this makes me sad

  • Soj Varghese

    Sony your midrange phone should be waterproof and 13 mp camera (1.5 mp front) with stunning design and specification with reasonable price it will sell like hot cake. Don’t make all phones same design, change the design when you were in sonyericsson era

  • spatch

    How ha Motorola won back acclaim and public favour? Not through expensive, cutting edge hardware and 20 megapixel cameras. They are not after the Apple crowd with designer, top-level phones, they want everybody. Inexpensive hardware, unbloated almost-stock Android UI. That has won the hearts, minds and dollars of the public and the press.

    Sony needs to follow in Motorola’s footsteps if they have any hope to win back market share in the mobile space.

  • Abdul Ghani

    this happened for making 15 devices in a year just make 1 flagship 1 phablet 2 midrange and a low end and provide good software support

  • xperiax10.awesome

    Just two HIGH END phones each year !!
    Xperia Z series 5.2″ (mar-apr)
    Xperia Z Ultra Series with S-Pen kinda feature 5.7″ (sep-oct)

  • Niels d. G.

    A phone with stunning specifications and design wouldn’t be midrange any more and would be more expensive.

  • lovebmw

    i agree, they need to look at what others did not do, i would have jumped on that SEXY sharp bazeless phone, but the specs were too boring, if only sony made ONE F!@#$ phone to focus on, we would not be having this issue…. but because all there unlimited amount of endless almost exact phones that keep popping, they can’t even keep up with updating them….

    FOCUS ON ONE PHONE YOU SELFISH LOW VISIONED MANAGING TEAM THAT YOU HAVE SONY….. ANY WHYYYYY ARE YOU NOT IN THE U S A WHERE THE MONEY IS?

  • Shaik Farooq

    SONY LOOK AT MOTO AND TALK

  • Shaik Farooq

    SONY SHOULD DO THIS NEXT YEAR

    SONY PREMIUM PHONES

    Z4

    z4 compact

    z4 Ultra

    And if you think you can maintain a midrange device then

    Z4 LITE

    z4 compact LITE

    z4 Ultra LITE

  • Vuyo Ncube

    And NOTHING else in the midrange. Good plastic chassis with no glass to make it even cheaper. Basically a beefy, premium Moto G 2014.

    No T/C/E/M series successors. No token lowrangers. No separate selfie phones. No separate music phones. Just a single, streamlined, versatile, pocketable SP successor that mashes together everything that 5 other phones do separately. The Z3 products are already doing that so why not trickle that down to just one budget-friendly phone?

    Support the current midrangers with care. People paid more money than usual for them (mainly the T2 Ultra and M2 Aqua) that are actually pretty good. They’ll get cheaper over time and become solid and affordable so no new phones ideally should be made.

    Don’t even think about refreshing the Z3 Compact and Z3 Tablet Compact for a year at least. Refresh the Z Ultra on its 2nd anniversary and no earlier. Use the cheaper Snapdragon 210 for future smartwatches. No midrange tablets as well. They would just get chewed up by Nexuses and Samsungs even if they were good.

    Samsung recently lost money from bloating the low/midrange market and is still pumping phones we don’t care aboutor are badly marketed. LG will probably feel it later too; uninspiring midrangers masquerading as G3 variants and the overblown 3rd Gen L series may drag them down.

    Take it slow. One step at a time. Feel free to continue the 6 month flagship refresh cycle if it makes money. The Z3 is the best ever smartphone bar none to conclude the 1080p flagship era and the Compact is an unchallenged beast too. Just don’t get too excited at the first sign of profit.

  • ShinOrochiX

    One would’ve thought that the mid range sector should be their strongest, competitive price with decent, but not too powerful hardware.

    Unfortunately Sony just can’t get it right, there is always something wrong, Xperia SP for example too expensive when released and no 4.4 to.finish with. Xperia M2 horrible resolution and 4.4 probably final version.

    Furthermore flooding the.market with flagships doesn’t help, it just confuses newcomers.

  • lovebmw

    and late updates

  • Guest Buster

    Actually…, Fujitsu, Sharp, Panasonic, and Sony or basically almost every phone manufacturer in Japan uses this strategy, Don’t know about Kyocera though.

  • (C):stem

    Well, this is the result of a bad strategy that Sony had used since the Sony Ericsson times. What’s the point of releasing a bunch of midrange phones if you’re not going to update them? Xperia SP, L and M are sad (but true) cases, but it’s not the first time Sony acts like this. Cases like Xperia S, Neo, X10 etc. come to my mind. They never learned from their mistakes and here are the consequences.
    I used to be a Sony fan boy, mainly of their midrange line but I got tired of their policies. Now that I can afford any flagship I want i just don’t like any from SONY and I chose the Nexus 5 instead. Motorola is doing things well too, Moto X, G and E are gorgeous, for example. It’s time Sony comes back with new ideas and a renovated attitude or it will die (at least in the smartphone sector).

  • jonyah

    It would probably help to stop ignoring the US too. We have to jump through hoops to get Sony’s phones right now, or bow down to older ones at T-Mobile.

  • Malih

    Maybe people not buying 2014 mid-range Sony phones today, because they don’t feel satisfied with their 2013 mid-range Sony phones.

    Sony better focus on high-end phones for a year or two, and release only one no-compromise model each for mid and low-range.

    Forcing people to buy new phones by not updating old-phones have only made customer dissatisfied and leave Sony.

  • Sadab Khan

    Stop using Snapdragon 400. Switch to snapdragon 615. Problem solved :)

  • Ismail Hossain Rana

    Very Good…….

  • thoughts

    That was over the top

  • roeshak

    Sony’s yearly releases should go like this
    Mwc – flashship phone and main device, flashship tablet, one reasonable specced mid ranger and entry level device. In my opinion, they should scrap mid rangers altogether. Too many better specced phones coming from Google and China.
    IFA – compact flagship phone, compact tablet and maybe phablet also.
    That’s it, a 6 device line up per year. That’s more manageable and should greatly improve confidence in the xperia brand rather than the situation we have now were xperia devices drop in value further and faster than any other devices on the market. It would also help improve software development, not just with updates but also innovation. They’ve just got a really horrible insane strategy that has no hope of success whatsoever.
    I’ve had Sony devices since the x10 and there have been a lot of dark days particularly with the x10 and S but the thing that makes me now want to switch to Samsung next year is the 6 month cycle. Everytime I see just how far the z2’s price has fallen, I weep a little inside. The phone’s only been on the market for 5 months and it’s already lost over £120 of its value. Ridiculous!!!
    Sorry, resale value matters to me as I like to upgrade yearly and sell off the older model. With Sony, you just get so much less back because of this 6 month cycle. I kept a keen eye on the z2’s price since it went on sale in may and it held its own pretty well until rumours of the z3 began. Then it fell sharply and is still falling as we speak.
    I was very happy to see Samsung make a move towards the premium segment with the alpha and note 4. That bodes well for the s6 and I think it’ll be hard not to finally make the switch next year. I’ve g flirted with the idea of switching for some years now but never made the jump. I think I’m pretty much ready now to do so. Sony just seem confused, Whistling in the wind and stabbing in the dark in the hope that they’ll stumble onto success somehow. A joke!

  • Phat-t

    They should only focus on two smartphones a year, a 5 inch(+) flagship and a compact flagship!! Screw anything else!

  • Prateek Bhanushali

    One can clearly notice the pricing is the only factor here for this huge loss. Mid segment is actually dominated by those cheap chinese companies….. Sony is still engaging in this segment but the Most dominated companies lyk Samsung and Nokia are affected too by the low cost phones by China. I think Mid-segment is the toughest segment to beat !!!!

  • Jonathan Bratanata

    The all-metal-is-a-stylus is a good thing… It made me laugh at the reviews that literally used anything they could find, and it’s functional

  • Guest

    Don’t forget 16GB internal memory, i’ve already filled my 8GB and make it waterproof if it is possible with the light bar…

  • sid

    Obviously Sony will loose market as Motorola and other Chinese companies like Xiaomi have entered in mid-range segment with the bang!! Xperia SP was the star of mid-range for last year and now Sony is neither considering about release of Xperia SP2 nor given software update for original Xperia SP.

  • jonny

    Son be like apple use to be. Few products at a time. Although apple is pretty shit now but yea…

  • jonny

    Sony*** wtf lolol

  • fried_egg

    Sony should stick to the Apple idea.. 2 phones at a time… the last model reduced to a lower price and a brand new one at the premium price… stick to the quality and let the mid range get the no names…

  • fried_egg

    not in america because of the distribution not sony…

  • paul4id

    I’m not American, but it is a mistake not to be in that market.

    Not because they should care specifically about American sales over the rest, more that the US media are extremely loud-mouthed, and have an influence on spreading advertising/marketing/fashion propaganda to other countries whether we like it or not. This affects not only people in the Anglosphere countries, but all countries given that English is the lingua franca and language of science and technology. (the iPhone reality distortion field bing a prime example of that due to Americans always having inferior phones to Europe and elsewhere in the first place)

  • paul4id

    I don’t think one is a good idea. You need a choice of screen sizes.

  • paul4id

    and the Compact?

  • xperiablog.net

    Playing devil advocate I am not willing to spend money on xperia z3 because it has not have snpd 805 your flagship is n0t any better, damn

  • Karl El

    Sony is dying slowly everyday, less innovative and less focusing on software side.

    Last ten years Except the PlayStation and the alpha NEX I don’t see any Sony’s products that cool enough to win competitors, now Sony is just a follower and have no idea, Sony can’t allure people to buy their products anymore, there’s nothing real cool and WOW! …The end is coming!

    Sony mobile needs to quickly change the vision and strategy too Wake up! People have many choices and Sony Xperia is not special than others

    At least Galaxy Note or iPhone is much h/w and s/w innovative and very unique

    So pity and sad that Sony has many great techs in hands but sony damed them up and not fully integrate to Xperia flagship phone and Tablet. Maybe sony should merge all divisions for Sony’s engineers can work together closely.

  • Raphael

    Looks like Dan Loeb will send a new letter to Kazuo Hirai.

  • Vuyo Ncube

    There IS a choice of different screen sizes already that doesn’t need refreshing. T2 Ultra, T3, E3, E1, C3 and M2/Aqua are your options and they’re actually mostly good. Just overpriced. Support them past Android L and make nothing else.

  • Kaostheory

    Doesn’t work in business. Apple is still out front and can afford only 2 phones. Anyone in business that aren’t the leader need a lesser segment just for cashflow and to build recognition. Also to get discounts for material ordered.

  • BruceLeeRoyJenkins

    Sony did say they would be implementing their IP prowess in to next year’s mid range devices. Now they have to focus on specs and pricing

  • Raphael

    Exactly what many analysts predicted in January 2013 when the Xperia Z was introduced at CES and what Sony CFO Kenichiro Yoshida hinted last June. Kazuo Hirai told the Telegraph last week : after slashing the PC division, “people really need to understand there is no safe haven.” He knows his position will be at stake at the next no dividend shareholders meeting.

  • b6

    for their mid-range, there’s really no answer to the question “why should I buy a Sony instead of something else?”

    there’s a lot of models, it’s confusing, and no real advantage over other brands. I think Sony should either abandon mid- and low- range entirely, or extend something special to all of them – like, *every* Xperia should be waterproof, whether high, mid or low range, for example. Since they’re already releasing new flagships every six months, they could do what Apple does and just have their older models take the place of mid- and low- range, like how the 5S is now the “entry” iPhone.

  • Nawi

    No more mid-range phones for Sony. That would be best =)

    Only ZX, ZX Compact and ZX Tablet

  • Wolf0491

    Trying to buy a Z3 help you out here. Put it up on US site already haha.

  • crazychef83

    I think part of the problem is that they produce the same phones with diferent names for diferent markets in the mid-range products. but they should just produce less than a handful of mid-range phones. 2 to 3 high end phones and thats it. People cannot expect that if they buy a mid-range phone that that phone is going to last them for the rest of their life and for sony or any other manufacturer to provide updates for eternity. We must remember that the updates are also based on the processors capacity. and if qualcomm also stops suporting those mid range processors well your out of luck.

  • Akuma

    See what happens when you disappoint Xperia S, T, V, TX, SP users? Hahaha you make hugeeeee lossssssssss….muhahahahahahaha

  • Abdul Ghani
  • Danny

    Sony now have and E3, M2 + Aqua, T2 Ultra, T3, C3, Z2, Z1 Compact and the upcoming Z3 series. released in 2014

    Now I love the Z series and the upcoming Z3 series.

    I dunno what they wanna do, but just continue making one low-end, one mid-end, one High End and a Compact version and a tablet and compact tablet. that’s all.

    Low-end for $200 or under,
    mid-range for $400 or under
    High-end for $600 or under, plus Compact version. plus Tablet, 10″ and 8″ .
    that’s 4 phones and 2 different size tablet.

  • Rikimaru

    “At least Galaxy Note or iPhone is much h/w and s/w innovative and very unique”/

    I disagree, Sony been first to bring hardware HDR, white magic screen, NFC, water proof dust proof, Hi-res audio, camera compact technology in a smartphone. They did much better than Samsung and Apple about innovating.
    Xperia Z3 bring better than IPhone 6 and latest Samsung.
    Sony bring usefully thing. And do not play the stupid war to get higher CPU higher Screen resolution…

    And they also changed the way to see photography with the A77 and A99
    A7S.

    In TV industry, X-reality pro has been recognized as the best processing image rendering.

    They also did great stuff in pro world like in medical area…

    In Car industry they made new sensor 10 times better than the actual,
    This will allow car to see in night as in day…

    Sony keep to do more and more in any domain…

    Take time to look carefully about all they do and all price they win every years and you will see they are every where and still the Great Sony. ;)

    About mid range phone they should do less and focus on service,
    spam market as they did was good start strategy, now they have to reduce and focus.

  • Rikimaru

    People being more and more impatient…
    At least most of Sony update (specially for Z series bring new software).
    Android it’s self bring few difference excepted for some version but most of them bring nothing noticeable for the client. people rage and being impatient but at lest they still use the same application what ever their android. More technologies is fast more people is lazy and impatient. ;)

  • lovebmw

    True, but they are ruining their image which is why they are not selling well, aside from how high priced they are, and not able to find a way to penetrate the us

  • Rikimaru

    People is never really satisfied they always finish to want more and more.
    If they are not satisfied by mid range it’s mean they didn’t been aware of what they bought. most mid range la M2 T2 T3 let you enjoying a lot, excepted biggest 3d game probably… But at my sense true game experience isn’t on phone…

  • shanefalco

    Sony has screwed up big by focusing only on the range z
    churning out low and mid-range models with ridiculous display giants and
    painful resolutions (see m2, and t3 e3) and cameras 8Mpx poorly
    optimized. Sony does not have to be copied from other brands but must find
    own identity as in 2012 then slowly more and more lost
    following the more famous brand. Then we say that should improve both
    level marketing distribution both in my opinion. A model of
    interesting and balanced midrange could be this (to start
    2015): 4.3 “ips 960×540 (256ppi) snap410 1gram 8grom + sdcard 8Mpx. :) Greetings from Sony!

  • Battal Aljadei
  • Robert

    I’m very sad.
    This is a very bad news.We have to give as much support as possible to SONY, for this reason I will purchase new smartphones.Now that they have secured greater customization of the Home are very pleased.
    Update all the terminals of the Z series to kitkat 4.4.4 is a very good strategy.
    Finally a stylish themes are available.

    https://play.google.com/store/apps/developer?id=PHONENOVA&hl=en

  • Dreamer Fanboy

    change the yearly strategy

    – Q1: March, Launch
    1) Xperia Z series (5″ Cyber-shot phone)
    2) Xperia W series (5″ Walkman phone; Walkman music app, Great sound chip)
    3) Xperia P series (5″ PlayStation Phone; dual-boot android/VitaOS, PSVita card game slot, detachable controller)

    – Q2: June, Launch
    4) Xperia M series (4.7″ mid-range phone)

    – Q4: October, Launch
    5) Xperia Pad series (8.9″, 13″ tablet for entertainment and creative, responsive and sensitive display that can use finger, pencil or any stylus to write note and sketch, water and dust resistant)
    6) Xperia One series (5.3″ truly One Sony flagship phone, combine all features of Xperia Z,W,P and Tablet into One smartphone, newwest breakthrough technology, premium material, classy design, water and dust resistant)
    7) Xperia E series (4.3″ entry-level phone, water and dust resistant)

  • Raghu

    Last week I was feeling bad as Sony announced that SP will not be updated to Kitkat. Now I feel happy and expect them to loose more.

  • Looking at the attitude of Sony towards its customers,Xperia may be the other business to close because of losses after their Vaio.They have ditched so many xperia models of software updates last week which were even one year old.Whatever the reasons,they are losing customer faith.

  • tk

    I am Jack’s complete lack of surprise. Whoever is in charge of don’t customer relations should be fired.they really need to communicate more. Releasing contradictory statements in regards to updates is what is pissing a lot of people off. The midrange used to be Sony’s bread & butter, that’s how you give customers a taste & convince them to invest ibn the flagship.

  • tk

    Don’t= Sony, blame auto correct

  • Steven Khoo Skkl

    You sir..have my vote..
    The current gen of low-mid range are good in hardware..if Sony just supports them with Android l and maybe another mid life software update, they are sure to make more profit than forecasted..

  • fried_egg

    do you think sony hasnt tried to get in that market? there is your problem. it is a market with “over capacity” of brands… and sony would have to discount heavily to replace one of the other brands being stocked. so, do they go further “down market” where they clearly have problems by discounting or do they hope their upmarket phones get carried… it isnt that they are not wanting to sell to america, it is the retailers have limited shelf space, consumers have limited interest in the number of brands being offered and there are too many brands already in place…

  • fried_egg

    it is more complicated than that. sony have a component arm… which like samsung they sell to apple and use themselves… and capacity is not so important with the apple like model everyone from xbox etc has moved to… ie outsourced fabrication. sony doesnt make its phones, and is selling off its tv arm etc… it however is suffering from the “kodak” problem of having legacy plants in the wrong places (it cant just sell the plants to the outsourcing companies but has to shut them down – and that wasnt budgeted for). so sony could cut to up market phones, using some of its own components by reducing their orders to the fabricators. BUT they currently still have their legacy plant costs…. cutting out the loss making mid market mass market and doing the same as apple and staying in the premium end is actually much easier to do than you think… the problem is their legacy costs require them to be a mass manufacturer still… and that means they are hit in two places… the markets they fail in and their legacy costs.

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  • roeshak

    This problem with the mobile division isn’t new. They’ve been making bad choices for years since the days with Ericsson. That partnership eventually got killed off and the Sony takeover heralded, or so we thought, a new beginning.
    That initially seemed true with the launch of the Z, first waterproof high end smartphone which made waves. That phone got people talking about Sony because it came with something new and exciting. I’d actually say confidently that it was indeed their best selling smartphone ever.
    Trouble is, it was a false dawn. The same ugly truth remains, Sony is a company that doesn’t really respect the market and consumers. This is the essential point. They always want to do things their way and that way only until they can’t go on with it any longer.
    Those dreams of being the 3rd largest manufacturer seem so distant now. Just like htc, they’re now groped with others. LG is the only manufacturer outside China who’s numbers keep improving. Sony’s figures now have been on a downward spiral since q3 2013 after the buzz following the original z died down. No flagship release since the z has managed to gather the same momentum. The z2 could have actually matched and even surpassed the z but delays in getting it onto the market hampered its chances.
    The z3’s got even less chance because it just doesn’t offer anything above and beyond what’s currently on the market for less money.
    All in all, Sony have always seemed to me to not like the way the market works . They always seem to do right thing only after trying everything possible to preserve the wrong thing. Flooding the market with near identical offerings is just the latest in an ever growing list of idiotic policies.
    To be honest, I think looking at the way things are shaping up, that LG will be the only of the smaller known OEMs to survive the Chinese onslaught.
    Ultimately, I see demise for Sony and htc. Two companies that just keep making stupid mistakes and in do doing, alienating many of their own customers. Trouble is, they’re rapidly running out of the time to correct these mistakes.

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  • paul4id

    A new Xperia Pro would fix that

  • paul4id

    You are right that this certainly isn’t a one-sided affair. The US networks sound not only extortionate but incompetent from what I hear. I suspect it might also be something to do with with dirty deals with certain fruit companies to maintain competition only with Korean-government-funded (originally US government funding initially in Cold War) tat…

    Whatever, it is a well-recognised brand and they need to keep trying and play along and get some phones sold to the dumb masses who buy on contract without knowing what they are paying. If American operators want unreasonable terms and lock-downs then let US customers have such sh1t, and hike the prices up for the dumb Americans as they won’t notice on their extortionate contracts.

    Meanwhile, also offer the same phones unlocked at the normal cheaper price for the more educated US Citizens. The former though needs to be a focus as they need the cash to survive, and if you can’t beat em then join em. Even the dumb Americans who got ripped off on their contracts will then bleat loudly all over the Internet about how great their Sony phones are, and that will give a global sales boost.

  • ray

    Just cut the waterproof capability and focus more on design, ui and software.

  • Ogi

    So basically they shouldn’t change the design AT ALL just so that the folks with cases shouldn’t have to buy a new one?

    That may just be the dumbest thing I’ve heard so far this week.

  • meet118

    It’s end now. Bye bye sony.
    RIP sony… Look ur past sony Ericsson w550 what a sound clarity. Camera quality. And look ur present performance. Same on u sony… Fuck off

  • Sharmine

    You’re also forgetting that for people who want smaller phones with flagship specs don’t have much to choose from, and the Xperia Z1/Z3 Compact is a fantastic idea, trying to give an alternative to phablets, which can’t even fit in both my hands nor any of my pockets.

  • Dean Weaver

    Xperia support is dire (non-existent) thanks to the absolute cretins at sonymobile. The mobile division is doomed with these idiots – shame….

  • Alexey

    Sounds good after all EOL anouncments of mid-range that were anounced last month.
    At least SONY doesn’t make a profit from their lie.

  • djsilentg

    having just heard the news, the thing is i just brought a xperia tablet z2; i haven’t even opened it; should i return it? what do the xperia blog community think

  • Rizky Maulana

    what mid-range ?
    i didnt see any mid-rage here :v
    poor sony :v

  • Jumbo

    Wait… Samsung is a success? And Iphone is a success too? They lost their glory didn’t they? I don’t see any ‘wow’ effect with their iphone 6….

  • lovebmw

    it might seem they lost their glory, but look at this http://www.extremetech.com/computing/190085-iphone-6-and-6-plus-break-pre-order-record-android-was-right-about-large-screens

    4 million iphones in 24 hours, if thats not success, then what is?

  • XxRampage07xX

    Sadly, Sony won’t listen to any of us :(

  • p2p

    Just a little better support in the mid-range, with “only” this support many clients would be happier and, maybe, would buy other Sony mobile.
    Discontinuing all the 2013 phones is, I think, a mistake. Each mobile not updated is a client that will not buy other and, most important, a client lost that will never trust in Sony…. And this kind of client is really hard gain again.

  • TonyE

    I’m not surprised, they are not updating low and mid rang phones, none of the 2013 low and mid range have KitKat. No one is buying phones from company that doesn’t care about there customers as soon as they got there money. And even worse, they are lying about updates, as they did with Xperia SP

    http://a.disquscdn.com/uploads/mediaembed/images/1287/6466/original.jpg

  • ram

    Its all defect in Sony they are trying to escape by blaming on other
    manufacturers like HTC,Samsung etc its all their fault not giving proper
    updates and equal importance is not given to all handsets selling
    handsets overpriced when compared to other manufacturers

    funny thing i found is that if Sony doesnt concentrate on mid range its gonna
    see huge loss in asian countries more than whats its facing now
    specially in India sony always late never be up to date in market Sony
    released xperia E3 to compete with Moto G2 how funny it is? Xperia E3 is no where in front of Moto G2

    According to Sony upto 20k priced handsets come under mid range Sony wake up if u be in that state Next loss will be in India I almost decided to not buy Sony when it rejected Kitkat Update for Xperia M,L,C,SP even though few mobiles like Xperia m has life time of 6
    months more according to sony 18months support, and even it dissapointed SP users by giving kitkat promise if u be in this state next you will face losses in India

  • Sal3m

    they won’t succeed with their awful marketing. they don’t market their products, and they always focus on particular regions.
    they don’t advertise their flagships, most of people doesn’t know how good xperias are

  • Sal3m

    between my Zr and s4, my Zr received 4.4.4 first

  • James

    plz launch mid-level with more configuration like as (MOTO) with in 13k.

  • Alexey

    I just left the link here: Motorola’s president and COO claims the “days of the $600-$700 smartphone are numbered”http://www.phonearena.com/news/Motorolas-president-and-COO-claims-the-days-of-the-600-700-smartphone-are-numbered_id61046

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