Sony shifted focus, no longer pursuing mobile phone sales growth?

On February 19, Sony president Hirai said Sony was likely to pull out of the white-hot TV and smartphone market by developing camera sensors and the PlayStation Gaming division's goal of achieving net profit growth of 25 times times its current profit within three years.

Hirai said in Wednesday that Sony would no longer pursue sales growth in the mobile phone sector, as it was being contested by Low-cost handset makers in Asia and encircle by industry leaders Samsung and Apple.

Sony will focus on more profitable businesses, such as camera sensors, video games and entertainment, and expects Sony to continue to lose money this fiscal year, with Sony hoping to turn a profit.

Hirai was speaking at the close of the Tokyo stock market, after which Sony shares rose 1.4% per cent in the New York stock market.

"From the next business year, our strategy is to achieve profitability and boost growth through investment," Hirai said at a news conference, saying it would give subsidiaries greater business autonomy.

Asked about the TV box cell phone department, Hirai said he would not "rule out the possibility of exit". This is by far the clearest explanation of Sony's potential to sell television and mobile units or to find partners for these sectors.

Sony is now restructuring. Sony has sold its personal computer division, stripped its television business unit and cut thousands of employees.

Investors welcomed the Hirai appointment of Kita as chief strategist at the end of 2013, and Sony's share price rose 80% per cent over the past year.

Hirai said Sony will achieve the target of 10% return on equity by March 2018. He also said Sony set a long term target of 500 billion yen in the 2017-2018 fiscal year, according to a forecast that Sony's profit for the fiscal year ended March 31 is only 2 billion yen.

Once Sony's Walkman and Trinitron TV have influenced the way people play around the world, Sony's influence has been less, but analysts believe Sony can make better use of its electronic products and Hollywood movies.

Hirai said Sony will focus on the development of online music, and focus on expanding its PlayStation Network user community.