Sony to withdraw mobile business from India as company continues to lose money

Sony’s Xperia smartphones have only about one per cent market share worldwide.

Sony will withdraw its smartphone business from India, the company revealed at its strategy meeting for the fiscal year 2019 in Tokyo. The move comes as Sony continues to lose money on smartphones.

In addition to India, it will also withdraw its mobile business from other global markets such as Australia, Mexico, Africa, Canada, and Middle East, which are being referred to as non-focus and defocused regions by the company.

This should not come as a surprise as Sony recently confirmed it will close its smartphone manufacturing plant Beijing and move its production to Thailand for reduced production costs. Reports also suggest that the Japanese company will cut as many as 2,000 jobs from its mobile pision by 2020.

Sony has been unable to compete with the likes of Apple and Samsung in the global market and its mobile pision continues to lose money. Sony’s Xperia smartphones have only about one per cent market share worldwide.

However, Sony has listed in its presentation slide, some focus regions as well, which includes Japan, Europe, Taiwan, and Hong Kong markets, where the company will likely continue to market its products. At the Mobile World Congress 2019 in Barcelona, Sony launched its high-end Xperia 1 smartphone in addition to Xperia 10 and Xperia 10 Plus.

Sony has been unable to compete with the likes of Apple and Samsung in the global market and its mobile pision continues to lose money. (Screenshot: Sony presentation slide)

To streamline its business, Sony is said to merge its Mobile Communications pision with the Imaging Products & Solutions and Home Entertainment and Sound pisions. The new pision will be called Electronics Products and Solutions. Sony’s former CEO Kazuo Hirai announced he will leave the company in June and work in an advisory capacity.