Sony stops manufacturing phones in Brazil

by XB on 21st June 2016

in News

sony-brasilSony Mobile has ceased smartphone production in Brazil according to a report from ZDnet. The company has ended contracts with ODMs Foxconn and Arima “due to lack of fiscal incentives and the current financial crisis.”

This move represents a change in tact from Sony, who announced plans to aggressively expand in the Brazilian market only last year. Up until now, Sony Xperia smartphones were manufactured in Brazil by Foxconn and Arima, who both had plants based in São Paulo.

The move by Sony is partly based on the removal of tax exemptions of locally products smartphones costing up to R$1,500 ($530), which means that the company will now only sell imported Xperia devices into Brazil. Sony Brazil’s marketing director Ana Peretti has also said that news will make distribution more flexible.

Via ZDnet.

Thanks Ryan!

  • Renato BoyRock

    I’m brazilian. I’ve been buying the Sony devices since the Xperia X10 mini. I’ve had Xperia Neo V, Xperia P and Xperia M2 now have. I wanted to buy the Xperia M4 or M5. I disappointed with the price. I became interested in the Xperia XA. I’ve given up completely. Xperia M4 costs about US$ 440. Xperia M5, about US$ 760. Xperia XA, US$ 527, Xperia X, costs about US $1,110 !!! Xperia Z5, US$ 1,260 and Z5 Premium, US$ 1,380 !!! These are final values ??to consumers in the Sony Store website, already including taxes.
    Sony has for many years losing its customers in Brazil because it has a pricing policy that completely escapes the reality of the Brazilian people. Their smartphones are much more expensive than most smartphones available in the Brazilian market. We pay for a mid-range value of a high-end. Sony missed the opportunity to differentiate themselves from competitors by offering more affordable. Instead, it has its products accessible to those who are willing to pay very high values. Its products are known in the country, but no one is considering buying because they are much more expensive than others and the differences are not attractive. They lost market because they are too stupid, to be completely honest.

  • Vinicius Araujo

    I’m brazilian too. And yes, everything you said is true. Their pricing is insane, especially when you remember that the minimum wage in Brazil is around US$260.

  • DBS

    “We pay for a mid-range value of a high-end.”

    If it serves of any solace, they are now doing that Worldwide. Sony’s asking flagship prices for a mid-ranger (the Xperia X) in Europe and America too.


    “Sony missed the opportunity to differentiate themselves from competitors by offering more affordable.”

    This isn’t a sustainable business model for anyone but Chinese manufacturers. Chinese manufacturers benefit from the very very very almost-slave-like rates of manufacturing in China. Chinese OEMs have, therefore, an unfair competition advantage because international companies, even if they’re manufacturing in China, are accountable to their governments for the way they source labour. Chinese OEMs aren’t.

    The only way Sony could have done this is Brasil would be for them to force Brazilians to work in Sony factories almost for free and for the Brazilian government to look the other way (this, admittedly, would be the easiest part).

  • Mateus B. Cassiano

    You must be crazy to buy anything directly from the official Sony Store BR (for comparison, they still sell very old devices like Xperia M and dare to charge 800 BRL — approximately ~ 230 USD — for a mid to low end phone released in 2013). You can find way better prices in other local retailers, but yes, most Sony phones here are overpriced.

    By the way, managed to buy an Xperia M5 for 1600 BRL (~ 470 USD) in March on a local retailer, still expensive but very happy with it, especially considering the lowest I can find it nowadays is around 2100 BRL (~ 615 USD)…

  • ryq24

    I believe the real reason is poor sales. The rise of cheaper Chinese phones have hurt Sony a lot.

  • MoYeung

    ODMs Foxconn and Arima will close their Brazilian factories soon…

  • Thats really a loss for Sony truly. In Pakistan, Sony is present officially for every product but does not offer phones. I have also been using Sony (Ericsson) since K500i & K750i days till the Z5 and prices here are, i should say, better and everyday lowering according to international market.
    I bought my Z5 for around $470 two months back and i guessed it alright because its the same price nearby countries are offering (without warranty of course). Let me tell you if Sony brings it under official warranty here, it would have cost me around $700 easily so i always prefer their phones imported from Dubai and without warranty because Sony’s phone pricing sucks and would be the only thing which would let them sink in this war.

  • Alvin

    Slowly…… they just…..

  • Amir

    Oh really? That is all? Sony should stop making smartphones from about 1-2 years ago, not just in brazil. They don’t deserve to make smartphones as they never really addressed their problems, not learning from mistakes.

  • Andrius Mikalauskas

    I suppose wild capitalism sucks… :)

  • Roh_Mish

    And here I thought sony India was grossly overpriced

  • Roh_Mish

    This. Down here In India too pricing is always abysmal. Don’t know what are they thinking. Weren’t it for the price, thry would definitely be successful with so good hardware.

  • Roh_Mish

    The problem is that they don’t know how to make phones, at right prices the X and XA would surely kill the competition. But sony wants to charge double of what the price should be

  • Amir

    That is no news. As always since they took over ericsson – overpriced, no strive for perfection, no true competitive mind, bad quality control, bad marketing, etc. They should stop insulting consumers by stopping to make smartphones, the sooner the better! They damaged the sony brand enough as it is.

  • Sridu

    You are not alone. Sony fans across continents are pained by sony’s ridiculous pricing.

  • jokensy

    Wait a minute…they make phones in Brazil???…Ha! Ha! Ha!

  • It’s not just you buddy. I’ve been with Sony from 1998 (Ericsson -> Sony Ericsson -> Sony) and in South Africa, they’ve just priced themselves sky-high. I’m seriously considering getting an old Z5 Premium come November/December this year as what might be my last Sony phone :’-( :’-( :’-(

    Otherwise I’ll look at importing a ZUK Z2.

    Or look at a Huawei .

    As a *LAST* resort, I’ll look at a Samsung S7/8 or a Note 7/8 but I REALLY don’t like their phones’ software, lol.

  • Emil Oskarsson

    Oh, I found your comment pretty insane, I have never had any quality issues with any of my Xperia devices. Neither have my friends and family…. Just bought myself the x performance so just shut up :) The reason why I buy Sony phones is that they do offer me a better experience than other manufacturers can!

  • iia3ezu

    Once again a terrible lack of foresight from the head honchos in Sony Mobile. How surprising… not.

  • iia3ezu

    For that kind of money and those kind of mediocre specs, you would do better to purchase a Xiaomi of comparable specs and still have leftover money to spare.

  • iia3ezu

    Sony still thinks that people will pay a premium for the Sony brand.

    Sony is not Apple.

  • Harut Hajin

    SONY the most expensive brand in every segment
    When the bulshit Apple making crap and selling for sky prices nobody want to ask, tell. Sony must be like this, no matter Your countries GDP, can’t don’t buy, want buy with a credit, or used one.

    Most expensive portable recorder
    Most expensive condenser-type microphone
    Most expensive electrit-type microphone
    Most expensive TV
    Most expensive turntable
    Most expensive music player
    Most expensive DSLR

  • fried_egg

    It is amazing how many people posting on this tread… 1) do not know WHY Sony and others actually started to make phones in Brazil and 2) how their country has trade agreements that affect the price and availability of products in their country and thus make it hard to value one against another (both branded phone against phone and country against country it is sold). Brazil is a “closed” market with high tariffs which with its oil boom economy had become worth opening factories in, that has changed… and Pakistan, India etc are all countries with similar levels of protectionism and varied liberalized markets… so people comparing the price they pay to other countries or the models available are not arguing with all the relevant information even though they live in those countries

  • fried_egg

    Brazil is a closed economy that is expensive to export to… and now it’s economy oil bubble has gone one that is not worth the cost of opening a factory in to avoid the import & other costs… the problem is BRAZIL not Sony

  • jadukoralim

    No one is forcing you to buy Sony phone. Don’t like it don’t buy it. And don’t come to this site. And you should stop insulting yourself by coming to this site. Asshole.

  • Talos the Robot

    Foxconn is puppet company of Apple and also a company with bad reputation of how they behave to their employees. I think is better for Sony to have its own factories with better quality control and not be tied by Chinese companies with low quality control that give bad reputation to Sony. I have products made in Japan by Sony and others made in China and the quality is tremendous in favor of the Japanese.

  • Jonny

    Haha. New Nokia. Stay hungry, stay foolish.

  • Talos the Robot

    Because Asian workers are exploited more easily.

  • Stanly

    The X costs almost the same as the Z5 in my country Malaysia.

  • Ryuzaki Raiga

    i think they sold to whole continent

  • Ryuzaki Raiga

    right now in South East Asia, people buying Samsung/apple for rich, lenovo/asus/xiaomi for budget. also dirt cheap Chinese phone. majority people here stop buying sony since android era started back in 2010. they much better buying smartphone that have a lot of accessories

    people who buying xperia today only sony fan. in my country sony never reach top 10 smartphone since 2010. its rare to meet people own Sony xperia. sony smartphone that famous in here is xperia x10/mini, Acro S, SL, Z/SP/L, Z2/Z3. since 2014, Chinese phone become popular and poor people can use smartphone.

    with increasing living cost here, people tend to buy cheapest smartphone so SONY strategies won’t work anymore. maybe Sony will stop selling here within 1-2 years

    there’s also people shock when they know rich people can afford MYR3400 smartphone while cheapest smartphone here is MYR260

  • lovebmw

    the beginning of the End

  • azzido

    It has begun… R.I.P.

  • shenoy

    Made in Japan will cost u double. Must agree on reliability n build quality.

  • Raj Singh

    Sony has no idea what to do. Ineptitude at its finest.

  • QBerto

    u mean HUE! HUE! HUE! (?)

  • rygarto

    While Foxconn certainly made a lot of money making iThings for Apple, it’s definitely not a puppet company. (also, while it mainly operates in China, it’s a Taiwanese business)
    Please remember that Foxconn (or Honhai) is THE biggest contract manufacturer of electronics in the world, meaning it makes over 30% of all electronics. It takes the next 5 largest manufacturers to match Foxconn production numbers.

  • Matt
  • Matt
  • Abdul Ghani

    even though i hate that x series is expensive but man DBS acts like he knows the world hahahahahahahahahahah

  • Hideg Jen? Péter

    This. I own k500i (third time dead lcd, so it was useless) and k850i (working but one time replacement lcd but suprinigsly compliable modern MicroSD with lastest software, still excellent camera quality than current phones with custom software camera from XDA)
    time flies, X8, Xperia Mini Pro, Xperia Z, SP…(Xperia SP for my mom)
    I felt Xperia X Performance is overpriced, I skip this year.
    I was hoping to see better product stuff from Sony…(I looked Sony TV is awesome with great build quality, fancy LED lighting RGB)

  • Renato BoyRock

    I know what you talking about, but i use the official Sony Store as example, as parameter with others countries. In many other retailers, we found better prices, but not too much better prices. The point is the Sony’s pricing policy, and the cost/beneficts of your devices. It’s not so affordable how before. If we consider the old value of dollar (before 2014 elections), this values could be much higher.

  • Renato BoyRock

    Here in Brazil there is a term we use when we found it very expensive products, “BRAZIL COST”. We know that taxes are too high in Brazil, and there is over-taxation in almost all cases. But manufacturers, not just smartphones, enjoy it for over-pricing their products, focusing on a “Apple effect”, I mean a value of your brand, not your product. I know this happens in almost all countries, but in Brazil it gets to be absurd. When I say that Sony missed the opportunity to offer competitive prices, I mean you could do this to be an interesting option front of your competitors. In Brazil, we have interesting options Motorola / Lenovo, Samsung, LG and Asus, comparable to Sony devices, but with much more competitive prices. In other countries, the price differences between the devices are not so great between the Xperia line and other smartphones, at least from what I have researched. With these prices, they are not even noticed, their products are not considered for purchase by much of the population. Samsung for example, is well known, and has the largest market share by offering good products at affordable prices, accustoming their customers and other consumers to your brand, making their products more expensive are seductive, making your customers to consider paying a little more for your Galaxy S6 / S7. Often those who do not live in Brazil have no way to imagine how these things are here …

  • Well this company is so amazing we all know be it Bravia, Xperia, Alpha, PS or the Ex-Vaio. But indeed their products are always overpriced thats a fact and its regardless of the country you are in.
    I bought their 32″ LED back in 2013 for a price at which i could get any brand’s 40″ easily only if i’d want but im a Sony die hard so i was more than happy to buy that LED TV for a premium price.
    But thats not intelligent you know, paying this much price, i know the product is premium but they take price more than the premium always except the PS which is priced OK in every country.

  • If only they could get their pricing (& marketing too actually) right for every of their product line, i know they can give every brand a run for their money seriously.

  • Same goes here in Pakistan, If you have money you’d have an iPhone or a Note5 bla bla but if you dont have much money to spend on a phone, there is Huawei, Lenovo, Qmobile (local) to cater that segment. Only true Sony fans get Xperias for themselves and that too via E-shopping webs who import Xperias on demand. Its normal here that when people see me using a Sony phone they ask me, Oh Sony makes phones too? lol.

  • Well i want to clarify one thing here, only revolution i know from Apple is the 1st Gen iPhone, after that, they are only cashing their success of 1st Gen iPhone every year with very few and very late additions to iPhones. Only thing im a fan of from Apple is their strong aggressive penetrating marketing in almost every country which buys them thousands and thousands of customers.

  • DBS

    Maybe because I do?

  • Right now, they are not in a condition (in mobile division) to actually backward integrate their business. So its better and feasible to stick with these manufacturers because Sony is not strong enough to actually have their own factories for everything. If you are really good at it, you produce it at home (like Samsung) but if you are not then you buy it from the market right.

  • DBS

    I don’t think you understand how brand power works. Apple manages to do that because their brand has power with the consumers. Sony’s brand on the other hand as been on decline since the 90’s. The only place where Sony’s brand still commands respect enough to justify excessively high prices is PlayStation and there Sony is smart enough to not overprice the PlayStation so that Microsoft won’t crush it with the lower price of the Xbox.

    Sony has the most expensive TVs but LG’s are better (which is kinda why Sony offloaded their TV division).
    They have the most expensive DSLRs but both Canon and Nikon are better.

    They have the most expensive music player but almost no one is doing them these days (unfortunately I must say).
    And they have the most expensive mid-ranger but there are far better phones for that price.
    I think you get the picture. Sony is NOT Apple. They can’t get away with overpricing anymore.

  • Jacqueline Sanchez
  • fried_egg

    Brazil is a closed market economy. It is not liberalised and as someone who has been part of banking products that invest into the country (but due to fx movement laws have to actually trade in USD outside Brazil to actually settle – which is ridiculous and shows how closed a market it is) you have no idea how “expensive” and “protectionist” Brazil is compared to the USA or the EU. It completely distorts the cost of a product in the country. And if you think a globalised production product “just opens a factory in Brazil” unless it had to in order to operate there you are mad… The extra costs having small plants cost in ineffectiveness (especially if they then have to close at no small cost) have to be reflected in the local sales price.. unless you think WE should pay for Brazils protectionist plant in the price of Sony phones in another country not made in brazil

  • Ryuzaki Raiga

    the problems with Japanese is their electronic high quality and high price at the same time. so when Sony produce all those thing outside of japan they still think they need to use same price tag as in japan.

    i watching latest Japanese drama and found out majority laptop used on tv show is Lenovo for cheap or mac for premium. this is difference 10 years ago when most of laptop use back then is Toshiba for cheap and VAIO for premium.

    that’s mean even Japanese people tend to prefer non Japanese electronic if it more cheaper compare to old days. high living cost make Japanese started to buy Korean or even Taiwanese if they more cheaper

  • I have never read such nonsense in a single post

  • DBS

    Curious, since you can’t read.
    Or present facts to prove me wrong.

  • Harut Hajin

    YOU DONT KNOW NOTHING ABOUT SONY. It has professional division and it selling like hot cakes, even 10 years old PCM-D50 didn’t get low price after years, 499 $ now 499 or more.
    Every recording studio using Sony C800G mic it’s dream for every musician it’s about 9000$. Every TV OR INTERNET SHOW using Sony Lavaliere Microphone and systems, every mixing or recording engineer using Sony MDR series headphones, every professional operator using Sony camera, every even consumers using Sony’s 35 years old BP, NP series of batteries for powering everything, one small battery selling millions for 130$, JUST COME IN PROFESSIONAL WORLD, GET UP.

    SONY MAKING LENSES, SPEAKERS, PROCESSORS, SCREENS, and Apple, Nikon and others buying them, for Me apple is apple only name, not a engineering, manufacturing or something. When I used Sony Ericssons, all people, like You, dreaming and buys Nokia, but now Nokia…..

  • DBS

    Do yourself a favour, stop being an ignorant obnoxious fanboy and face REALITY. Your opinion is worth sh*t to the market. Apple is only a name? Yes it is. And it’s making more money a year than Sony can even dream these days.

    Sony has been losing money FOR YEARS. It’s irrelevant that they do all those things. Things like Sony Mobile are dragging Sony to the bottom. In fact, the thing keeping Sony afloat isn’t any of that crap you mentioned. It’s the PlayStation division. The PlayStation division is the one that managed to, this year, for the first time in THREE YEARS, allow Sony to present profits.

    Here. Sony’s 2015 FY results by division

  • Harut Hajin

    You are a Keyboard Typer, just open windows and breath real air and come in real world, last night I loos auction in eBay for SONY PCM-D1 which is the 12 years old unit with come price 1999$ and now after my 700$ bid, it sold for 2200$

  • Harut Hajin

    Akai, Panasonic, JVC, Canon, Nikon, Tsubo, Audio-Technica, Sanken, Pioneer, Sharp, Mogami, Daiwa, Shimano, Slik, Zoom, Tascam, Roland, Korg, Eneos, SEGA, All the best games,
    Even pro bikes made in Japan, like Bianchi or others.
    Every pro using Japan made stuff, and others German, but not a butter, oh sorry I mean apple

  • Harut Hajin


  • DBS

    LOL Dude, you’re pathetic.
    “keyboard typer”? How the hell do you intend to write on a computer? Let me guess…you send a pigeon to a civilised place, far from the mountains where you live stuck in 1990, and have someone type it for you?

    Also, the SONY PCM-D1 is a museum piece by now. That’s why it sells for that. Otherwise it’s outdated crap.

    Seriously…just stop. You’re being absolutely pathetic. No one is arguing about Japanese quality. Also, in case you don’t know, Sony has been manufacturing stuff outside of Japan for years. Again, wake up to reality.

  • Oh and what innovation you want from Sony so you might buy their phones? And please remind me what innovation iPhone gives to its millions of customers who buy it on more than its deserving price?
    Sony gives everything you need to have in a practical phone. Better battery (1 to 2 days really), stereo speakers, waterproofing, at par camera (see comparison videos with S7/Note5 on Youtube), the best and responsive fingerprint scanner, clean & blazing fast UI, better sound quality with earphones and did i mention its looks? Well my Z5 is a headturner.

  • Tammy House
  • Harut Hajin

    I’m pissing

  • EQ

    You smell funny Apple. Talking about innovations Sony has done far more than Apple which motto is to steal other brands inventions, tweak them and resell them at premium price aswell as suing the original inventor.

  • Tisha Baker


  • ZerothGlacius

    Wait, what was Foxconn and Arima producing for Sony Mobile anyway? Last year’s stock has probably reached the end of the production run (I doubt M5/M4/C5/C4 are still manufactured), and the current crop (including E5) is reportedly manufactured by Sony itself.

    Unless that info was wrong and the E5 as well as XA series are actually ODM manufactured….

  • ZerothGlacius

    Trust me, Foxconn-made Xperia M5 is one of the most well-built handsets I have seen in a long time.

  • EQ

    I found a photo of DBS “DeckBattSax” Nokia. I think he need some friends cause he seems lonely trolling in here..

  • Atila

    It’s not the taxes… it’s the people. We do pay a LOT for midrange phone, and keep paying, I mean, why not just look for a reasonable phone? This only happens in Brazil. Most of our durable goods are overpriced, and we just accept it.

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