Sony

Sony Is Planning To Change The Site Of Production: To Bid The Cost Of Production

Sony announced the ceasing smartphone operation in Beijing, China by shutting down a main plant in the far eastern country. The facility would apparently stop for the next few days. A spokesman from the Japanese company said that the step to be taken to cut costs and improve the profit of the beleaguered smartphone business that hadn’t turned a profit since from some time.


Sony However, that is not to say that the company has to venture its smartphone initiative goodbye, as it plans to shift manufacturing activities to Thailand to cut costs up to 50 percent. The Japanese giant hasn’t mentioned how many employees would be cut off from the result of the closure. Apart from making smartphones in Thailand, the company also wants to plans outsource some manufacturing activities. They believe that this step would help it cut down the operational costs of the smartphone and make the smartphone business profitable near the year of 2020.

Sony


Sony‘s mobile division has been started struggling since some time ago. Despite repeated efforts, the company was not applicable or unaccepted to turn the tide and perhaps that’s why such a drastic or bad step has been taken. While other units of Sony continue to do well, the smartphone has become something of a bad spot for the company and made a loss of $863 million in the year of 2019 that will end this month. Some industry watchers also believe that Sony should sell its smartphone business in the Chinese market. The company’s global market share is less than one percent the main loss was due to share market and it only managed to sell 6.5 million smartphone in the current financial year.

Other companies, like Apple, Samsung are also struggling in China, given its microeconomic conditions and the strong presence of other best smartphone companies such as Huawei and Xiaomi. Last year, Samsung also decided to shut down its factory in Tianjin because of strong competition from local brands which caused its sales to decline in the many countries mainly in Asia.

Sony’s representative has also told that its main decision that nothing to do with the bad or war relations between the U.S. and China. The two countries ha been engaged in tariff war since a while now.

Although Sony is kind of backing off right now, it has no intentions of quitting or says no to new smartphone and says that its new smartphone will be a best part of the 5G revolution. The company is working on the next generation of wireless networks which return to profitability by 2020.


The company is also reportedly planning to merge it’s mobile or smartphone unit with the TV, camera, and audio wing and the new leg would allegedly be called “Electronics Products and Solutions” (EPS). While this helps the company to hide the specific starts for its mobile unit in the future, it will surely have to get a little more time to do creative for this to make its smartphones profitable and working in the condition of the long run. For now, the company would most likely be focusing on many new sensors like image sensor research & development of the Internet of Things (IoT) and self-driving cars. On the smartphone, we can hope the company to go along with the release of the Xperia 1 and its main successor but after that, it could take a while or we says to be should very late before the company launches a new phone.

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