Sony Mobile CEO: We will never ever sell or exit our smartphone business

by XB on 6th July 2015

in News


Hiroki TotokiSony Mobile CEO and President, Hiroki Totoki, has given an illuminating interview to Arabian Business touching on a range of topics, including the company’s position in the mobile space. When addressing rumours about Sony potentially selling its mobile division, Totoki says that Sony “will never ever sell or exit from the current mobile business.”

Totoki talks about 2015 being a “year of big transformation” with hopefully an improved performance in 2016. Remember Totoki has only been in the Sony Mobile CEO hot-seat for nine months. He goes on to refer to an industry with “severe” competition, but believes Sony can come on top through new technology and high quality products to drive the user experience. Check out some choice quotes below and the source link for the full interview.

Totoki on Sony Mobile’s turnaround

“I’ve had to work very hard and I have been busy, but people are very cooperative and have shown a lot of energy to turn around the position, which is a good thing. I’m confident that things will continue to get better. We are trying to decrease our costs by 30 percent to the end of 2016, and reduce our headcount by 20 percent. We are trying to streamline the organisation as well as our product portfolio to maximise our profitability and improve our ROI”.

“We have set out our plan already and are just starting to execute it. This year, 2015, is a year of big transformation, and we will try to complete this transformation by the end of the year, and hopefully see an improvement in financial performance in 2016.”

Totoki: Sony has no plans to ever exit from mobile

“The speculations arose because in 2014 we made a huge loss as a mobile business. It mainly came from the write-off of the goodwill of our impairment asset. When we bought back Ericsson’s share [in 2012], we bought back 100 percent of it. And obviously that price was high. We had to write it down and it made a substantial loss for the company.

“But this was an accounting loss and did not impact our cash flow. Our cash flow is very healthy. But the accounting loss was so huge — that’s why people have speculated like this. Before that rumour, we exited the VAIO business, which was the PC business. That led people to think that Sony would exit the smartphone business, as well. But the smartphone business is very different from PCs.

“Smartphones are completely connected to other devices, also connected to people’s lives — deeply. And the opportunity for diversification is huge. We’re heading to the IoT (Internet of Things) era and have to produce a number of new categories of products in this world, otherwise we could lose out on a very important business domain. In that sense we will never ever sell or exit from the current mobile business.”

Totoki on the competition

“When we introduced the Z3 to the market it was very well accepted. But now we see a lot of emerging players, including Chinese manufacturers trying to make good quality smartphones, so the competition has become severe. We’re trying to introduce new technology in the future and diversify our product even more. The quality and strength of the product is always the starting point as far as strategy goes for the company.”

Totoki: Better technology will bring a better customer experience

“In the morning when people wake up, they look at their smartphone. When they go to bed, they look at their smartphone. Smartphones are part of life today and people now have high demands. They prefer a good quality of camera, a good quality of screen, and also good picture and audio quality. These are basic demands that people want now — they want high quality. And it’s in this area that we try to install new technology to give a better user experience, and a better feeling for the customers.”

“Yes, the competition has become severe. The smartphone device consists of a battery and a screen and chips. These are the main parts of a smartphone, and people can easily make them now. But it is the user experience that is not the same. Even if the device is the same, the user experience is different. And this is a very important point. People are not buying a smartphone because of the device and the way it looks — they are buying it because of the experience.”

“Of course we are using a very good quality of image sensor that our colleagues at Sony created. That’s the craftsmanship in technology that we have to install to provide the best user experience. That sort of craftsmanship in technology is very important — it’s key to becoming more than just a mere smartphone. It takes the quality higher, improves the brand image, and the user experience.”

Totoki on wearables

“We’ve got a good feel for the technology and we’re not limited to the smartwatch. We include smart wear, smart products, and smart devices, and there are many more things now being made for the IoT (Internet of Things) era.”

“Those types of devices, and that side of the industry have become huge, and not limited to a smartphone device. Now we try to develop smart devices that are connected to the smartphone. In the future there will be categories of products that will connect to the network, connect machine to machine, connect machine to human, and connect human to human. That sort of connectivity will expand and we will try to develop even more categories in the future. That’s one major focus for this company. It’s a big future strategy.”

Via Arabian Business.

Thanks Raphael!

  • Srijan Chawla

    “We will never ever sell or exit from the current mobile business.”
    Music to my ears :) Cheers to what’s ahead !!!

  • SopNaw

    So good to know it when it seems that Sony Mobile is not the best in that times. Of course, i’m with you Sony!

  • nfs2010

    Damn, this is going to upset few people =)

  • Afzal Zainal Rddz

    Iam glad sony keep moving foward . And hoping next upcoming flagship will be a good stuff to purchase

  • Abdul Ghani

    They prefer a good quality of camera, a good quality of screen, and also good picture and audio quality. These are basic demands that people want now. Best quote ever hope he delivers in next set of smartphones

  • DanielGearSolid

    Glad to hear it

  • nfs2010

    This is exactly the reason why Sony’s been putting up with losses from their TV business. You simply can’t quit the business that essentially defines your presence. It’s actually more applicable to cell phones. Imagine Apple without Macbook – never gonna happen.

  • 21187

    Great news! Good to get a definitive answer on the subject.

  • nfs2010

    Also fuckin* market your shyt. Crapsung stole the album widget, timescape, small apps, multiple user mode, stamina mode, display modes and took all the credit from the dropouts (a.k.a. reviewers).

  • xperiaDROID

    That’s right! That’s the thing I wanna hear again since Kazuo Hirai denied on rumors of Sony selling off their mobile division! Stay with us, Sony! We wanna see you bring some innovations and shine again like in the Sony Ericsson era.

    Now, can anyone confirm that whether Sony will launch the Z5 this year or not? Cuz after I update my Xperia Z to Lollipop, it kinda sucks because the bugs are annoying. I’m seriously looking for a new phone right now and considering the LG G4 or HTC One M9+. The reason why I don’t want a Z3 or Z3+ is because it feels like the same thing, I want the “new phone feeling” and plus, the Z3+ is using Snapdragon 810 which I think people should avoid that unless you don’t mind about the overheating.

  • Luis

    Great! I cannot imagine myself with another smartphone brand that’s not Sony.

    Love my Xperia Z3 Compact!

  • nfs2010

    It all depends on the 820 availability. It’s sampling now, so I’d say Z5 isn’t going to show up before December. But I could be wrong. Z3+ doesn’t overheat as much as people make it out to be. The GPU itself is good enough to kill G4 & M9+. But yeah, wait till Nov/Dec if you can!

    Btw, my ZL runs fine on Lollipop!

  • GigaSPX

    Forever Sony phones now!

  • Timel

    Sony gets to live another day…

  • That’s great news for sony user’s :D
    Never leave my sony product !!!!
    Sony Xperia M C1905

  • Billy Gate

    They should axe the Flopstation Vita and make exclusive Playstation games for Xperia line.

  • Itsarapong Intoum

    I interest in what totoki will do from now on. Hire the better staff (Programmer, Designer) should be high priority task also.

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  • Augustine Kau

    excited about the next Xperia flagship :)

  • mountain

    They will definately launch Z5 very soon, have my bet on this one. This is only my speculations. If they launched Z5 only 3 months after they launch Z4, there will certainly be a riot here! Thats why they have renamed Z4 to Z3+. Japan, however, is a different market. Flagship phones are launched every 3 months, so people will have no problems over there.

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  • TechGuyChris

    Maybe 2015 will be the year I attempt to buy a sony smartphone. I bought a LG G4 this year because they were being silly with Z3+ and Z3 and Z4 and didnt have it available anywhere to play with (including their own Sony store). If they have a Z5 available to play with in the US ill consider purchasing it. Without marketing in the US, you’ll get nowhere even if you have the best technology and 2016 will be another 2012-2015… Let me hear the CEO say “Increased marketing budget” then i’ll “Make.Believe”

  • Timel

    I want to see the flexible oled phone like Kyocera Proteus from Sony

    http://cdn2.ubergizmo.com/wp-content/uploads/2014/10/kyocera-proteus-640×480.jpg

  • Nathan

    Maybe they prefer a good battery life and sufficient storage too.

  • Svnjay

    Lol, no. The Vita is a magnificent device.

  • nfs2010

    It is awesome. But I wish they could keep it seamless like the original one :(

  • P9

    glad to hear this all the way, I worry this for sure for some long time.
    thanks Sony, I love u the best.

  • gamer324

    Forbes will try to spin this into something negative too, it was Forbes’s chinese whispers styled journalism that actually started this idiotic rumour in the first place. But hopefully this time the sheep websites would graze from the official pastures rather than repost the same old sensationalist crap.

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  • Billy de Fretes

    nice… that’s something i want to hear…
    quality camera and sound? oh sony, you need to improve your camera

  • Nawi

    Great news ^^

    Waiting for Xperia Z5 =)

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  • Abhinav Tella

    This (S820) is HTC & Sony’s chance to recover after the S810 PR disaster.

  • Jam Chua

    I’m such a Sony fan boy. Playstation and Xperia devices are critical additions to my life. This is great news!

  • Timel

    I don’t understand why Apple and Google can effectively run their whole company by without splitting any division as a separate unit like Sony did and One of the big problem about Sony/Kazuo Hirai was that he built a corporate structure at. Sony that didn’t allow for enough collaboration. Divisions were just that divisions and he couldn’t see the value of allowing them to work together more efficiently and creatively, that’s why OneSony plan will never truly happen or hard to happen. so Sony needs to change their old vision and their old tradition, seriously and quickly!

    I think these Sony’s subsidiaries including Sony Mobile, Sony Computer Entertainment, Sony Visual Products, Sony Creative Software, Sony Network Entertainmentand they’re all supposed to merge into Sony Corpration, become one company, a devices and services company.

    Sony Group including
    1) Sony Corporation (consumer electronic devices and services)
    2) Sony Semiconductors (processors, camera sensors)
    3) Sony Pictures Entertainment (movies and TV series)
    4) Sony Music Entertainment (record label and music publishing)
    5) Sony Financial Holdings (banking and life insurance)

  • InspectorGadget80

    Then stop doing those damn exclusives you belong in the SEC division not the mobile. And that’s good news to me also

  • it just a gimmick bro, do you really need it?

  • Timel

    Sony is the king of visual and audio, when people think of Sony smartphone, definitely! they think of the smartphone with the good camera(Sony is Cyber-shot and alpha NEX cameras maker) and good music experience(Sony is Walkman music playerso maker) but how many times they have to disappointed. However this is such a great news.

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  • InF3rN0

    That would be awesome.

  • Timel

    Just like when people said “touchscreen phone is bullshit” how about Apple iPhone now?

    Kyocera Proteus looks so cool, the future is coming

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  • InF3rN0

    Hope it’s next year so they will make a very refined phone.

  • SONY only
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  • Timel

    Vita OS is so awesome actually, it’s so smooth, so beautifu, so stable and it also supports full multitasking.

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  • redoak

    Comical broken English. And the standard Sony positioning “tranformarion this year, results next year”

    Most alarmingly, not a single mention of new software and services

    DOA

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  • Soj Varghese

    I am always prefer your phone to anybody and I purchased around more than 50 smart phone from you but you keep my request of make a good quality products with reasonable prices as customers are always medium class

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  • redX

    Yeahhhh… Go Sony Go, from that day I was worrying about ‘which phone I will use after sony stops ?’
    Now this is real Japanese , they never quit.

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  • Alvin

    There’s a new video app update.. Just got it.

  • Alvin

    Yeah! Sony will NEVER exit smartphone business.

    I knew they have something in line for next year..

  • Alvin

    Samsh*t and crapple attack will never get Sony down

  • Raj Singh

    They also took the spotlight for water resistant phones…

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  • Sadman Khan

    If the Z5 rumours hold true, it will be a legendary device.
    So far rumours say:
    Snapdragon 820
    IMX230 CMOS
    4 GB RAM
    4500 mAh battery (sounds like a dream)
    Fingerprint scanner

  • Tibor Hornyák

    I hope they will provide high end SoC-s, Fingerprint sesor, DUAL LED (or FLASH! k800i!!!!) and AMOLED for US, whose trus in SONY from the first phone!!!!

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  • Chan Kin Cheung

    actually i want to have IR blaster, nicest if it have native support for Sony TVs, cause I see many people having fun switching channels to their TV with their phone.

  • Chan Kin Cheung

    or they can implement something like xiaomi did. It actually developed a feature on their phone to control the (also android-based) xiaomi TV

  • Rosan Iliev

    Yes GO Sony! Best devices ever. Just please keep up the marketing as well so people actually hear about this awesomeness in the USA…

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  • laci_csk

    Go Sony, Go!

  • laci_csk

    No amoled pls.

  • laci_csk

    Dream on.

  • Leo Fennell

    To my experience they have really bad customer support. Sent my phone is for a cosmetic warranty repair, when I got my phone it will no longer read a sim card and they refuse to fix it. Loving my new g4.
    F u sony mobile.

  • Emil Oskarsson

    When it comes to software updates Sony only lacks behind nexus devices, that’s a huge step forward compared to a few years back. Not even samsung is close to the support of new software for older devices that Sony provides! Proud owner of the original Xperia Z and the Xperia Z4 tablet! ?

  • Chan Kin Cheung

    Eventual (albeit delayed, but promised) software updates seems to be the sole advantage of Sony mobile phones

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  • Chan Kin Cheung

    i don’t know that AMOLED can be used as flashlight

  • Chan Kin Cheung

    this sounds like legendary price count too

  • Chan Kin Cheung

    Sony is like David vs (two) Goliath (s)

  • Chan Kin Cheung

    definitive answers are scarce nowadays, ppl just overly use delusions

  • My ‘Rumor’ says, 10,000 mAh battery. How about that?

  • That’s a relief to read. Thank you Tokoti for the inspiring words. You’ve reassured me, and as such, I put Z line series phone on my calendar once again.

  • fried_egg

    Take away the “CNBC hype” from market news and it was never likely Sony would leave mobiles. Unlike the very mature PC market mobiles are still showing important innovation and profit in differentiation – and like Samsung, Sony are a major component maker… and thus it is a simple step for them to be both developing the components and being a real user of those parts… meaning they have a guaranteed customer for them (helping the development risk cost) and of course a company that has a “good understanding” of what is needed from future components. If they were just a component maker they would find themselves too at risk from being dependent on the end buyer who consistently threatens the supplier for best product and lowest price as Apple does… just look at the share price of companies who supply Apple and are rumoured to be losing their supply contract

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  • Geese Howard

    This dude is way better than Kazuo Hirai, starting to like this guy. With him on board hope he will give us awesome surprises. Much more assuring than Hirai.

  • Aaditya Brahmbhatt

    I don’t buy sony smartphones because of the design. They are stuck with same design for years, if they get creative into physical and OS UI designes their phones will be nearest to be a perfect smartphone.

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  • Great Dude

    I am not sure if this is sarcasm or what.
    Just in case, no Amoled can’t be used as a flashlight, if you read the comment again you may notice that he meant fingerprint sensor and Amoled which he means Amoled screen

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  • jokensy

    I just hope that those rumours about the Z5 are true!!!

  • Disregard Constabulary

    great news

  • Alvin

    Well three.. Include xiaomi there

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  • Walter Lloyd

    ugh now I have to wait til next year to get a better xperia. I am not digging the z3+/4

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  • Timel

    Just like the past when people don’t need touchscreen phone, they said “touch screen phones is bullshit” But what happened to mobile world after the first-gen iPhone came out?

    Sony need to do something new,

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  • Bnk

    They already did that.. I’m using TV SideView app from sony to control my bravia smart Tv..

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  • roeshak

    Enough talk .Sony have been talking now for ages .Time to see some concrete actions

  • Peter Ward

    Until a new CEO comes in with different ideas. There’s no such thing as “never” in business.

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  • WAIT HOLD ON A SEC! Where the hell Is album widget on Samsung phones my friend has an s6 and I don’t see it and where are small apps on Samsung phones? And display modes are only on Samsung not Sony and multi user mode is Google’s idea not Sony’s and wtf is Timescape? Ugggggh you guys are hopeless

  • That I can agree with that Samsung stole other than that I just head alot of fanboying there

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  • Riyal

    Timescape is the touchwiz of Sony Ericsson. Not sure how the poster mentioned timescape though… I have a s5 & SE Xperia Pro which uses timescape UI and I assure you they are way too different in every aspect.

  • Chi Wai Shum

    I do agree selling mobile business would be short-sighted. While it would make the account book looks good for the coming year, giving up a truly potential business area would hurt the company more in the long run.

  • dapaintrain

    I’m never buying another apple or Samsung product since I got my hands on the z3 I’m a big fan

  • Mathias Cronqvist

    Flag and ignore.

  • Timel

    It’s clear that You can’t ignore me

  • Mathias Cronqvist

    Maybe, but I’m certainly flagging your dumb ass.

  • Mathias Cronqvist

    Go home, Timel, you’re drunk.

  • Shubham Mutreja

    Hiroki Totoki:”We will never ever sell or exit our smartphone business”
    In is mind:”How can we fuck Timel then if we sold our xperia business???”

  • Shubham Mutreja

    Hiroki Totoki:”We will never ever sell or exit our smartphone business”
    In is mind:”How can we fuck Timel then if we sold our xperia business???”

  • Srijan Chawla

    Hahaha, too extreme don’t u think, everyone have their opinion, i would rather ignore than criticize his thoughts :P

  • Oh really ? tell me how ?

  • Danny

    I’m glad to hear that and I hope for Success to Sony Mobile and Sony Corp in the near future. I love it’s product and it’s Xperia phones and had own and used many of them throughout the years. I usually buy Xperia phones as gifts for friends and family.
    With that said, I’m disappointed in the Z3+/Z4, not in it’s features, but it’s choice to use Snapdragon 810 SC, with it’s well known overheating issues.
    I’m hoping to purchase a Z3 soon, hoping the price goes down enough with the Z3+ release and rumors of Z5, which I heard to be an awesome device, 4500mah battery, 20.7 MP rear camera, 5MP HD front camera, Snapdragon 820 (hope there is no problem), 4GB RAM, etc.

  • Mathias Cronqvist

    I can’t. I don’t know where you live…wtf
    But seriously, go home Timel, you’re drunk.

  • Iam not even Timel just because I proved someone bitching about Who copied who doesn’t mean i’m Timel

  • Blewbear

    They dropped their N.American market on their book readers, and they dropped SOE, so I guess it’s good that they’re coming out and saying that they’re not going to be doing that here with the mobiles.

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  • Alvin

    i agree with you, but small apps, they made it first. correct me if im wrong

  • Alvin

    nope, timescape is an app, not an UI

    there are a lot of misconceptions out here and there

  • Alvin

    and don’t forget sony is the first one to make themes available in android phones (stock downloadable from manufacturer or customisable themes)

    you also forgot water resistance, you forgot glass front and back and metal frame, you forgot flexible displays, robotic speakers or something like that, you forgot they stole IMX220 from Sony (well not really ‘stole’ lol), you also forgot the fingerprint sensor they took from apple, you forgot the damn ‘active’ naming for rugged phones, you forgot everything sony, apple, and everyone has first and samshyt didnt… the problem is that sony should market their products more and fu** samsung and apple sales

  • Alvin

    yeah i agree.. i should also thank hiroki tokoti for that

    hiroki tokoti is the man’s man

    hiroki tokoti is a good man

    (believe me, when i said tokoti, it’s not a typo)

  • Riyal

    Timescape is a UI. Timescape exists before android. AFAIK it was first integrated in the Xperia X1 which was released in 2009. The timescape widget & app was only introduced in the android devices and that came years after that.

  • Mathias Cronqvist

    Ok, Timel.

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  • Alvin

    that is xperia panel, not timescape..:)

  • Riyal

    Xperia Panel = Homescreen not the whole interface I believe…

  • Alvin

    you need to learn more about sony, sony ericsson, and ericsson if you are a true sony/sony ericsson/ericsson fan mate

  • Riyal

    i’m not a sony fan I must admit… :) Though I use to have both the X1 & the symbian xperia phones before and we from symbian-freak.com usually refer the UI as timescape that time hence my arguement.

  • Alvin

    Yeah I know, but does the X1 even have the UI name? I don’t believe so, and Timescape is only an app, reviewers and some people called it ‘Timescape UI’ because the interface of the Timescape app is similar to the UI in the other apps, or because they just called it so.

  • Alvin

    alright :D

  • nfs2010

    Sony made the small apps first for Xperia Tablet S in August, 2012 & Crapsung pushed it as multi-window as a firmware update to Note 2 couple months later. By that time, Sony’s 2011 Tablet S (not Xperia Tablet S) was also running small apps :D

    http://www.pcmag.com/article2/0,2817,2408988,00.asp

    http://mwdd.com/sony-tablet-s-android-4-0-3-update-brings-along-small-apps/

    http://www.gsmarena.com/galaxy_note_ii_firmware_update_is_out_brings_multiview_in-news-4911.php

  • nfs2010

    Yes, the list is too big. I definitely forgot a lot of the stuff you just mentioned :D

  • Alvin

    Really? My bad.. Aw thanks then :D

  • Alvin

    I use tv sideview. It’s magnificent

  • Alvin

    Agree with you. But i also use their tvs, their headphones, and their laptop

  • Alvin

    Yeah, because i trust totoki more than kaz although i believe in them.

  • Alvin

    You should come to indonesia, their service centre and after sales are not just bad, but so severe like a disaster

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  • Debbie Gallagher

    My Xperia fell apart in under 9 months. Camera lens hanging off the phone, shards of glass cutting my hand. Have the full warranty but Sony claims they have no phones to replace it. lol They offered to buy out my contract, leaving them with phones to sell at full price. Claim started 9/30/15 and still not even a check. Will never buy Sony product again!

  • Debbie Gallagher

    You deleted my post! So you only post positive reviews? Looks like you haven’t had any for 5 months. lol

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