After revising its annual forecast earlier this year, Sony is at it again, with the latest revision taking into account a 180 billion yen (around $1.7 billion) "goodwill impairment charge", which quadruples the company's losses for the financial year. Sony's mobile division was tasked with "achieving significant sales growth" this year, and with the company's Xperia line failing to meet that target, the manufacturer is now looking to "reduce risk and volatility, and to deliver more stable profits."
As a result of the new forecast, Sony estimates that overall losses for the financial year to be over $2.1 billion. The shift in strategy now sees the handset vendor shifting focusing its attention on the high-end segment, with devices like the Xperia Z3 set to launch soon.
Sony attributes lacklustre sales in the mid-tier and entry-level segments to a "significant change in the market and competitive environment of the mobile business", which has seen the likes of Xiaomi and Motorola emerging as crowd favorites in this category. By offering high-end features in mid-tier devices by selling them at near manufacturing cost, vendors like Xiaomi have managed to grab a significant chunk of the market share away from more entrenched manufacturers like Samsung, Sony, HTC and Lenovo.
Do you think focusing on the premium segment will turn things around for Sony?