Is Sony planning to cut costs of its smart phones?

Is Sony planning to cut costs of its smart phones?

On November 25, 2014, Japan’s Sony Corp. announced that they will be slashing down their Smartphone and television product lineup to facilitate in lowering down costs. Sony also said that they will now be focusing on the company’s popular PlayStation 4 and image-sensor businesses for the next 3 years. For the next 3 years, Sony is planning to increase sales for its PlayStation business by a quarter to as much as $13.6 billion or 1.6 trillion yen.

According to them, the sales for the PlayStation will be aided by personalized TV, music, and video distribution services. The sensor sales are working very well and this is because of the demand from Apple and Chinese phone manufacturers that are using Sony-made image sensors for their Smartphone devices. In July of this year, they said that they are expecting to sell around 43 million Smartphones for the whole of 2014.

This is below what they originally predicted which is around 50 million. Sony announced last October that they had appointed Totoki as the new head of Sony Mobile Communications. They replaced Kunimasa Suzuki for the reason that the company strived to sell Smartphones in the April-June quarter.