Sony’s declining smartphone business should appear as no surprise

Sony’s contempo banking balance report shows what happens back a aggregation has no clue what to do in the smartphone market.

Samsung may not be affairs as abounding Galaxy S9s as it would like, but that bearings isn’t about as acute as what Sony is activity through. Sony’s afresh appear balance report shows what happens aback a aggregation has no clue what to do in the smartphone market.

Sony managed to advertise aloof 2 actor smartphones in the analysis catastrophe in July 2018, which is bottomward 1.4 actor from the aforementioned aeon in 2017. You apprehend that appropriate — in one year, Sony’s smartphone analysis beneath by about half.

In acknowledgment to these poor sales numbers, the aggregation revised its appraisal for 2018 smartphone sales from 10 actor bottomward to 9 million. For comparison’s sake, leaked sales numbers point to Samsung “only” affairs about 9 actor Galaxy S9 units in Q2 2018. That’s aloof for one quarter, not the accomplished year, and that’s aloof one phone.

Sony has a advanced ambit of smartphones that it sells about the apple at all altered bulk points, but the aggregation is acutely accepting issues affective stock. So, what’s a aggregation to do? Is its abbreviating smartphone analysis too far gone to appear aback into relevancy, or is there still hope?

Sony’s smartphone analysis has absolutely been active in 2018 admitting the poor sales numbers. At CES 2018, the aggregation launched three new mid-rangers — the Xperia XA2, XA2 Ultra, and Xperia L2 — followed by the flagship Xperia XZ2 and XZ2 Bunched at MWC. Now, there isn’t annihilation inherently amiss with any of these phones, and they performed able-bodied in our abounding reviews.

So, what’s the problem? We don’t accept to attending far aback into our Sony advantage to acquisition an answer. In May, the aggregation accepted that it’s been declining to accommodated its smartphone sales goals because it’s not innovating fast enough. Specifically, the aggregation acicular to continued development/design advance times for its apathetic acceptance of industry trends. The best accessible archetype of this is aftermost year’s industry-wide about-face to 18:9 displays, which saw aloof about every phone — including in the high-end and budget-tiers — accept these thinner, taller screens. Sony didn’t jump on that appearance until it launched the Xperia XZ2 and XZ2 Bunched — absolutely one abounding year afterwards we saw the aboriginal 18:9 awning appear to market.

There accept additionally been a few added analytical missteps this year that point to Sony not accepting a bright focus on what its barter want. Aboriginal of all, the appraisement problem. Let’s get this one out of the way — Sony afresh launched a $1,000 smartphone that has a 4K affectation and not a accomplished lot abroad to advice it angle out from the awash exceptional smartphone market. It comes with a 16:9 screen, no headphone jack, and appealing ample bezels, too. Basically, Sony hopes the arduous change of the 4K awning will attract you abundant to bead an batty bulk of money on it. That’s not the smartest move the aggregation has anytime made.

Next up is the Xperia XZ2, which we accepted in our abounding review for its absurd audio affection and abundant display. We anticipation the $800 bulk tag was a little abundant for the States, but afresh Sony absitively to accompany it to India for a whopping 72,990 Rs., which translates to almost $1,062. What? Why?

Then there’s the Xperia XZ2 Compact, a admirable little phone that was accountable to actual little criticism in our abounding review. But at $600, it aloof doesn’t accept annihilation activity for it (aside from its bunched size) that the antagonism doesn’t already action — and best of the time at a lower price.

Even the Xperia XA2 Ultra, which is now somehow adulterated with the accession of the XA2 Plus, was priced appropriate about the added able OnePlus 5T and Honor View 10 at barrage — two phones that arguably action added for the money.

Pricing is acutely an issue, and Sony’s abridgement of announcement and carrier partnerships in the U.S. doesn’t advice cast acceptance either. If bodies don’t apperceive you’re affairs smartphones, you’re not activity to advertise smartphones.

All of these things accumulated point to a aggregation that doesn’t accept an advancing abundant adaptable action to angle out from the antagonism in any allusive way.

For all the things Sony needs to assignment on, it abiding gets affluence of things right.

I do like the shimmery architecture of the new flagships (even admitting I ragged on Sony for artful HTC), and it’s absolutely account pointing out that best contempo Sony phones are absolutely aggressive if you booty abroad the aerial bulk tags. Plus, the aggregation is accomplishing abundant things in the smartphone photography space. It aloof appear a new 48MP camera sensor, which could accomplish its way to smartphones in 2019.

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Software shouldn’t be understated, either. The Xperia XZ2 is one of a scattering of non-Pixel phones to abutment the Android P developer preview. That shows Sony puts a big focus on software — article added manufacturers should apparently do, too.

I anticipate Sony has what it takes to accompany its smartphones aback into relevancy. This is not a new company, and, conceivably best importantly, not a aggregation that relies on its smartphone cast for abundant of its income. What if Sony approved a little harder to differentiate itself? Booty some risks, you know? That way it can accumulate the aerial bulk tags while alms users a little added than what the antagonism is doing.

Maybe it could try amalgam its PlayStation cast into its smartphone line. Could we see an Xperia Play revival? What about a accurate PlayStation-branded phone? With all the new gaming smartphones advancing out, it’s not too bizarre an idea.

Listen, I don’t animosity Sony. For as abounding abrogating comments as I ability accept for autograph this, I don’t. I aloof appetite the aggregation to succeed, and appropriate now I see it authoritative a lot of bad choices that don’t accomplish abundant sense. If Sony can alpha blurred the prices of its flagships, alpha adopting industry trends quicker, and maybe booty some added risks, the company’s smartphone business wouldn’t be in as acute appearance as it is now.

Pricing problems and apathetic development

Not all achievement is lost

Editor's Pick

Sony said itself that it's too apathetic at adopting industry trends.

There's a bright appraisement problem, and the abridgement of announcement doesn't help.

Sony has what it takes to accomplish its phones accordant again. It aloof needs to be added creative.

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