Sony CEO Kenichiro Yoshida has reaffirmed that the company is committed to its loss-making Xperia smartphone company and is positioning this as a central part of Sony's entertainment-focused identity.
"We see smartphones as hardware for entertainment and a component needed to make our hardware brand sustainable," Yoshida said in comments reported by Reuters. "And younger generations no longer watch TV. Their first point of contact is (the) smartphone."
Nevertheless, Sony is by no means a major player in the smartphone industry, which only ships 6.5 million units in the past financial year and posted an operational loss of 97.1 billion yen ($ 879.4 million). This week the company said on its investor day that it was & # 39; out of focus & # 39; was: Japan, Europe, Hong Kong and Taiwan. Regions such as Australia and the Middle East will no longer receive much attention.
Yoshida's remarks are particularly remarkable because during his time as CFO under former CEO Kaz Hirai, he was seen as an instrumental force in the company's efforts to get rid of non-profitable units. It is unlikely that Sony will ever make a lot of money from smartphones, but it is clear that the company sees that it is still an important element of its brand.