Sony announced that its mobile division will be combined with TV, audio and camera products. Quoted from GSMArena, the new division will be named Electronics Products and Solutions.
Sony said that the unification of this division was because the Xperia smartphone line had borrowed the Sony TV division some time ago. However, some people argue that the unification of this division is because Sony Mobile has considerable losses.
In recent years, Sony Mobile has struggled to sell 13.5 million units of all smartphone units in 2017. Then in 2018, Sony predicted 7 million units of smartphones sold.
During the last four quarters, Sony Mobile suffered huge losses, more than USD 913 million or equivalent to Rp. 13 Trillion. In contrast, the TV and audio division produced operating profit of USD 714 million or equivalent to Rp 10 trillion in the past year.
The camera division also made a huge profit of USD 804 million in the same period. This clearly shows that the smelting of Sony Mobile to patch the division's losses.
Sony Mobile has been trying to reduce costs to deal with increasing losses. The target is to cut spending by 50%. Sony believes that the Xperia smartphone line can generate the fastest profit in 2021.
Xperia is not only included in the Sony Mobile division but is incorporated in other Sony divisions. Because the new Xperia line already supports 5G networks.
About a year ago, former Sony CEO Kaz Hirai said that keeping the Mobile division alive was a strategic step. Believed, the Sony Mobile division was able to increase the revenue of all Sony products and divisions as a whole.
But the new Sony CEO Kenichiro Yoshida disagrees with Kaz. Kenichiro actually planned to combine Sony Mobile in one division, Electronics Products and Solutions.
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