Sony simply cannot catch a break. After announcing a $2.1 billion loss and a move to restructure its mobile division last quarter, it now looks like the brand will lower its smartphone sales targets for the financial year.
Citing sources familiar with the matter, the Wall Street Journal mentions that the handset manufacturer will announce reduced targets by millions of units. This isn't the first time this year that Sony has had to slash sales estimates, as the manufacturer already trimmed the number to 43 million from the 50 million goal that it originally forecast. The latest reduction in sales targets is a direct result of the restructuring and the brand's move away from key markets like China, where Sony is delisting its entry-level handsets.
While the news does seem dire, Sony is at least making a concentrated effort to turn things around for its mobile division, which includes listing its latest flagship, the Xperia Z3, and its smaller variant, the Xperia Z3 Compact, in the US.
Do you guys think that Sony will be able to turn things around next year now that the manufacturer is increasing its focus in the US market? Or is it too late for the brand? Share your thoughts in the comments below.
Source: Wall Street Journal
Reader comments
Sony reportedly considers slashing smartphone sales targets once again
I want a Z3c very, very badly. However, under the current subsidy model, there's no incentive for me to pay full price. People would buy your phones if you would sell them in their carrier stores! Let me buy your phone and I will!
I'll take a Sony over a fall apart Samsung any day. Hopefully Sony can turn things around.
Posted via the Android Central App
Sony xperia z3 camera and screen sucks, thats's why.
Posted via the Android Central App
I highly doubt Sony will stop with the short release cycle.
Fad-Loving Japan May Derail a Sony Smartphone
http://www.nytimes.com/2013/06/27/technology/japans-fad-loving-consumer-...
"For years, Japan’s three largest mobile network companies have pressed phone makers here to update their handsets every three or four months, providing Japanese consumers a dazzling array of newfangled phones and features each season."
"The fast-paced cycle is commonplace in Japanese marketing. Manufacturers deliver short runs of seasonal products to create buzz, analysts say."
Stop making 2 flagships in one year and put all your efforts into that device for 11 months and you will see a HUGE difference. You're slapping your customers in the face by releasing 2 "flagships" every 6 months.
If they make their phone more affordable, it'll definitely sell more. They should really stopping forcing their unlimited movies and music on everyone also. Those services should be cut to save money.
Posted via the Xperia Z4
I'm getting a Z3 compact. It's just so beautiful and awesome and it's calling my name. And this Sony limited news makes it even cooler to own a phone brand that not everyone around carries. It will stand out amongst the iClones and Samsungheads.
If they would make the Sony devices available to order from the US that would help. And yes i know the z3c is available for preorder now. I would have purchased one instead of my g3 but I prefer a warranty.
Posted via the Android Central App
you get a sony warranty if you order directly from them.
Maybe if they offered their phones to Verizon and sprint they would be doing better
Posted via the Android Central App
And Sprint! Why not add those 2 right now with their Z3 and Z3C, I think they'd do really well. I think the z3c would especially do well since the iPhone just went large i think a lot of females would like an alternative.
I like their devices so I wish them the best numberwise
Posted via Android Central App
Sony should be eating a lot of crow by now. First US market no interest. They didn't care to sell. Now they pushing their products rather hard. Then it's no Android Wear and now... these are signs of trouble when you have no direction and proper leadership. It's good to see companies fall to humble themselves and go back to the basics of being customer centric.
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I've said this more than once and I don't feel like repeating myself. And the US market isn't that relevant for a company survival. Actually, the US market is a terrible investment for any company. Anyway, in resume, here's what I think Sony should do:
- Immediately drop the 6 month release cycle.
- Drop the low and mid-range markets. Focus only on high end premium phones.
- Tighten the software releases
- Actually listen to user input. No more 16GB phones, built in Qi charging, OIS, etc.
- Expand connections with the consumers which helps marketing. It's not understandable that Sony, who has the best cameras on Android, does have a more active Instagram for example. Nokia did that and had excellent results. Same for Twitter, Facebook etc etc.
- More marketing in the right places. Why, for example, doesn't Sony promote their phones on the PS3 and PS4 boxes? For example, with the current Z3 line, every single PS4 box should come with a promotion to the phone and remote play.
Sony never knew how to do cheap. So it's a waste of money to try it. If they were to focus their energy in their premium line, they would lose a hell of a lot less money and probably even increasing marketshare.
They are quite a reputable brand in Europe, but so was (is) Nokia. But reputation will only lead them so far. They need to keep themselves relevant to the consumers that already like their products...and guess what? Asking for 600€-700€ upfront for a phone (remember, we seldom do contracts in Europe) just to have it replaced 6 months later is bound to piss off a TON of consumers.
While I agree with much of your comment, I have to disagree with your statement about the US market not being relevant. It is the single largest national economy in the world. The only larger economy is a collective of 28 nations.
The 3 things that Sony messed up with is advertising, limited releases and the dumb idea of 6 month incremental upgrades. How would anyone in the US even know about them. Most of their top tier phones are only on Tmobile and they don't even have the latest available. Also if someone did get one of their phones it feels like you got shafted once the newer model comes out a few months later.
I currently own a Z1S and love it. The camera takes amazing pics and every time someone checks it out they say wow... that's a Sony? There is one moment that I realized that no one really knows about Sony phones is when my family and I went to a water park. I had the phone with me and people were staring thinking I was crazy taking my phone in the water. One guy actually asked me if it was the new Samsung GS5. If Sony wants to make money they need to get their brand known better.
If Sony ever decides to discontinue their smartphones, I will go back to Windows phone.... Hopefully they will get Xbox One remote play in the future lol
Posted via Android Central App
Then you'll never get a phone...
Posted via the Android Central App
I can't stand the huge bezels on Sony phones. They have good specs and seem to support their phones on the software side.
Posted via Android Central App
Have you not seen or played with their newer stuff. A lot less bezel
Posted via Android Central App
The xperia z3 compact is one of the best phones around. I certainly hope they do turn things around and keep making great phones.
Posted via Android Central App
I don't blame them from pulling out of China. The government there makes it near impossible to sell anything that gives people access to the internet. The more people on the internet, the more that becomes known about their tyranny, and the less power over their people.
Posted via Android Central App on the Moto X
Yeah, you know better than a billion people what form of govermant they want.
Your comment would make sense if that billion+ people actually had a say in the form of government that they have, but since it is a communist, tyrannical form of government run by the party elite, who will literally run over their own citizens with tanks to maintain their iron grip, your comment just displays a vast chasm of ignorance where your reason should be.
By the way, it's "government", not "govermant". If you don't have a dictionary, buy one, then utilize it. After that, become educated in subjects before expending what I can only imagine was an enormous amount of mental energy (for you, anyway) on posting to forums about those subjects.
Hopefully that won't be the case after successful releases in the USA. Sony makes one of the best phones out there.
Posted via the Android Central App
I'm in the process of choosing what phone to get next, so I feel like I am the typical target for Sony.
Currently on the 2014 MotoX, but will likely be returning it. I've been strongly considering the Sony xperia Z3v, but am a bit disappointed that it is basically the Z2 with a Z3 processor...that's kinda cheap of Sony. Plus I worry about updates in the future. Had it been the Z3c (or even the REAL Z3) that came to Verizon, I don't think there would be any question that I'd choose Sony - but instead it feels like they took a 6month old phone, gave it a new name, and expected Verizon customers not to notice.
Posted via the Android Central App
The Z3v isn't cheap of Sony, it's cheap of Verizon. Verizon chose to keep the Z2 body so that it could fit Qi charging.plus rumor was they were supposed to get the Z2 but held off for the Z3 so I'm sure they Verizon or stalked with Z2
Posted via Android Central App
It's really hard to get any traction with their products when they have lousy customer service and no real advertising for their phones. Plus their 6 month update cycle is unrealistic.
Posted via Android Central App on my HTC M8
Continue with the high end ones, give all the best hardware it can get. Regret your point and shoot cameras (Except the RX line), put the best sensors on phones nowadays. Work on the latest Android OS together with timely updates, presto.
From a Sony user since T68i up to Z1
This is a real shame. I am in love with my Z3.
Sony messed up when they left one one the biggest smartphone markets bare, the US market.
Posted via Android Central App
Sony has been a NON FACTOR since 2010 nobody buys or takes it's products seriously and it reflects in it's BELOW 5% market share.
They aren't the only ones sinking insert Htc, Google's famed Nexus line products, and Motorola all in this same area and presto now you know why android platform sucks monkey balls.
Lg at a little above 7.5% market share and Huawei at 11% market share pretty much rounds out the platform if you want to call it that.
At the end of the day manufacturers produce product for revenue and SAMSUNG is the manufacturer making legitimate profits and revenue five to 10 times more than all the android manufacturers.
Haters will hate which doesn't matter when it comes to dollars hate doesn't change reality.
People vote with their wallet Samsung will always be android and that's a Worldwide global effect Google will never be able to change.
From my Galaxy Note 3 on T-Mobile via Android Central App
Oh boy...
Posted via Android Central App
Leave it up to you not to be truthfully it figures that's the problem with android users.
From my Galaxy Note 3 on T-Mobile via Android Central App
Are you a moron or something? WTF do you think is powering your Note 3? If it wasnt for Android Samsung would be stuck still making lousy dumb/feature phones like the Instinct.
It's a Linux kernel along with ARM application processor that's powering any android device.
1. Truthfully, the way you've used the word "truthfully" is completely incorrect. Stupid idiot can't even string a proper sentence together without screwing something up.
2. Since you use a Note 3 (going by your un-updated signature, since you claimed you would be getting the Note 4 "day one"), you should know it's powered by Android. Therefore, you just classified yourself in that group of "android users" you are talking about. But of course, your bumbling delusional self sees all S# or Note# products as if they are not Android devices, but purely Samsung devices. (Don't) hate to break it to you, but without Android running as the OS, the base layer, on that "pimp slapping" Note 3, you would have a $700 paperweight. Moron.
Yep.
All of Sony's stuff is the same. Every time it's the same black rectangle called ZzZzZzzzz...
Maybe if they tooled some new phone bodies and released them in colors, put a large battery in it (even if they want to keep it sealed), then that would be a good start.
Sony is still playing catch up in general, and additionally all manufacturers need to realize that thin phones are old hat, which means it's time to start putting serious camera sensors in phones, Sony should at least TRY to corner this aspect of the smartphone market seeing as no one else is.
Sony supplies camera units to the other manufacturers and have been getting schooled with their own stuff for years.
GSMArena says that the Z3 Compact battery rating is 101, which is double the battery rating of Nexus 5, if you're not familiar with its battery rating system. And that's just the overall rating. Check out the individual tests (browsing test is relevant).
This is definitely going to be my next phone.
Huh? This reads like a template where you just cut & paste a manufacturer. I've never owned a Sony but the Z3 has twice as many color options as most other flagships. And a good battery.
Released them in colors and put a large battery in them.....like the Z2 and Z3 models?
@yarrell This is my response to you................nothing. You are a waste of breath.
Posted via the Android Central App
Sounds good loser. It's hard to defend something as truthfully as what I stated. Bottom line what you say who cares Sony isn't going nowhere can you help them to do better???? Of course you can't.
From my Galaxy Note 3 on T-Mobile via Android Central App
Can't take anyone serious who doesn't know simple grammar. You are so biased I'm surprised that you're not a iPhone honk.
Jim Lloyd
I actually left Samsung after two devices and haven't really looked back. They peaked at the S3 imo
Posted via the Android Central App
Just because Samsung sells more doesn't mean it's the best.
How much did Samsung pay you to post that?
Dick said Monkey Balls. Everyone take a drink!
As far as the rest of your blather, nobody is a hating in this thread but you, Dick. And market share is only part of the story, but your analysis of being able to insert Google, HTC, Motorola, etc. isn't quite accurate, either. HTC has returned to profitability, Motorola is close to doing so if they haven't already (and I hate them still), and Google has never been struggling with profitability as a company. You're deluded, Dick. But, hey, first step in overcoming a problem is acknowledging you have one. We are all still waiting for that to happen. In the meantime, I have my popcorn ready for the LOL-fest that is you and your comments.
Is this a carrier relationship issue, specifics in the firmware or lack of Samsung level promotional spend? The hardware seems good from Z2 on (though the camera management s/w needs fixing). Did they miss the boat with that stupid screen protector?
Sony really should be doing better; and yet - I'm holding a Note 3.
Awesome AC.
Hopefully they can then things around. Z3 will hopefully be my first Sony Android device once it's launched here in Canada.
Once you go Sony, it's hard to go back to any other OEM. Sony's hardware is just one of the best right now, it makes most brands look like cheap toys (looking at you Samsung). Once I whip my smartphone in a public pool, every iNeck turns to see what I'm doing. I laugh a lot with the incredulous looking faces ;D
HTC has great hardware as well. My next phone will either be the M9 or Z4.
Posted via Android Central App
Omg thank you! Lol
Posted via Android Central App
The note 4 is a beautiful change in design. That's coming from a Z2. I like this slightly new language design over my Z2. The radios in my note 4 also pic up better reception WAY better than my Z2. IMPO Samsung did good on the Note 4
Posted via the Android Central App
But Touchwiz...
Posted via the Android Central App
What about it. I find it very much more useful than my experience with Z2.
Posted via the Android Central App
Absolutely, I see a few zombies like you every once in a while.
The reason I'm not buying Sony is purely that I know I'll hate that it gets replaced by a new version shortly after me buying it.
6month cycles are too fast, try working on the launched devices instead.
They are having one year cycles starting in 2015.
Posted via Android Central App
Every major company are already doing that
Posted via Android Central App
6 Month cycles for the flagships? Who else is doing it?
Samsung. (Well, at least on the tablet side. The Tab Pro, which I bought in late Feb, was replaced with the Tab S a few months later. Subsequently, the Tab Pro will be my last Samsung tablet.)