Sony has announced at its IR Day 2016 in Japan that it will defocus in several markets including China, India, US and Brazil where it expects its smartphone businesses to shrink. One of the main reasons is that it expects FY15-17 CAGR smartphone growth in India, China, Brazil, Indonesia to be just 0.3%, instead of increase in 8.1% that was estimated last year.
Sony also said that its priority is to focus on markets where Sony can leverage its strengths to ensure profitability improvements.
It was focusing on high-end smartphones segment, now that company says that the growth is anticipated only in the entry/mid-tier segments. It expects competition with Chinese and Indian players to intensify in these segments.
It will maintain its core focus in the high value-added segment and develop its business through product differentiation, since players that are offering high value-added smartphones ($250+) globally are limited.
Sony will now focus in East Asia (including Japan),Europe and Middle East and work to maximize sales and profit by strengthening its business.
Sony believes that this move will help in reducing losses from unprofitable regions.