How is Sony going to reverse the current state of huge losses?

Absrtact: Sony said in September this year that the company expected to lose more than $2 billion trillion in 2014, mainly due to poor performance in the smartphone sector and a 20%-30% drop in sales. This situation is clearly unacceptable. In Tuesday, Hiro, the new head of the Sony Mobile Office,

In September this year, Sony said it expected to lose more than $2 billion trillion in 2014, mainly because of the poor performance of the smartphone sector and a 20%-30% drop in sales. This situation is clearly unacceptable. In Tuesday, Hiroki Totoki, new head of Sony Mobile, told investors that the most urgent task now was to boost the profitability of the business.

So how is Sony going to reverse the current state of huge losses?

The first is to cut the phone's product line and reduce the number of places to sell Sony handsets, but these two measures are likely to lead to a lot of layoffs. Next, Sony will focus on high-end, high-margin Android phones, the recently acclaimed Xperia Z3 is the typical representative of this direction.

However, the development of high-end mobile phones will not be smooth, Sony faces huge competition from Apple and Samsung pressure. And in the future, the new growth of smartphones, or in the direction of low-end smart phones.

Currently, Sony phones are not selling well in the US and China, the world's largest smartphone market, according to the Wall Street Journal data:

Sony's mobile phone business is relatively good in Europe, Southeast Asia and Japan, accounting for 34%, 27% and 23% per cent of its sales. But in the world's two largest smartphone markets: China and the US, sales are very limited, accounting for only 3% of total revenue in the handset sector.

But while the handset sector has been a "drag-and-drop" position in Sony, Sony is not abandoning smartphones because smartphones are not a major profit point, but smartphones cover some of the underlying technologies and are linked to fast-growing areas such as the Internet of things.

In a recent 3-year development plan for the electronics business, Sony said it would focus on developing the video gaming sector and push for PlayStation 4 sales, in an effort to bring the sector's quarterly revenue to 1.6 trillion yen (about $1.36 billion). At the same time, Sony's image sensor business will continue to maintain a strong momentum, including Apple's many handset manufacturers are in the procurement of Sony accessories, is expected in the next 3 years, the image sensor business will grow 70%, sales reached 1.5 trillion yen. In addition, Sony will continue to force the content field, in the next 3 years will increase the revenue of the movie and television program One-third.

Whether these sales plans will be finalized is still unknown, but one thing is certain: Sony does need some radical change.