Sony Mobile is reportedly giving up on the US and India thanks to its shrinking business in those countries. The company may also be planning to move away from the affordable sector and compete within the premium market segment.
These surprising revelations have come to light courtesy an investor day where Sony talked about its future plans. Xperia Blog has managed to get its hands on presentations from the meet. Based on these slides, the brand is looking to defocus on select regions and specifically said it expects its market share in India, China, Brazil and the US to become smaller.
One of the reasons given for this shift in strategy is that Sony is projected a paltry 0.3% FY15-17 CAGR smartphone growth from Indonesia, India, China and Brazil. This is in stark contrast to last year’s +8.1% estimate for growth. Things appear to have rapidly gone south for the firm over the course of the past year.
All this doom and gloom doesn’t necessarily mean that Sony will completely abandon these markets. It’ll probably spend less on marketing efforts and promotions to sell its goods. The manufacturer is more or less going to follow a similar plan for Latin America and Asia Pacific regions. It’s just expecting to preserve its market share in those countries, rather than any major growth.
Sony will now be refocusing its efforts to East Asia (including Japan), the Middle East and Europe. The company’s new plan of attack is to focus on selling phones which cost more than $250. As per its analysis, there are only about 10 major players within the premium market segment. Therefore, it could develop its business though product differentiation.