Sony still believes in smartphones, but it’s closing a major manufacturing plant

  • Sony will shut down a manufacturing plant in Beijing, China.
  • Manufacturing is to be moved to Thailand to slash costs in half.
  • The Mobile business aims to be profitable by April 2020.

As smartphone shipments in China continue to decline, Sony has announced that it plans to shut down its manufacturing plant in Beijing. Reuters reports that the company plans to shift manufacturing to Thailand in a bid to halve costs.

It is no secret that Sony’s smartphone business is on shaky ground. While there are no definitive numbers for the company’s shipments in China, analysts routinely bundle it in the ‘other brands’ category that accounts for 11 percent of the market. Last December, Samsung too announced the closure of a manufacturing facility in Tianjin amidst tough competition from brands like Huawei, OnePlus and Xiaomi.

Globally, Sony’s mobile division is heading towards losses to the tune of $863 million for 2018, said Reuters. The company’s shipments for the financial year 2018 stood at a woeful 6.5 million.

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As the company claws towards a comeback with a renewed design language, focus on updates, it is aiming to turn a profit starting April 2020. Sony has repeatedly confirmed that it has no intention to sell off the smartphone business and expects them to be an integral part of its 5G roadmap.

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What do you think? Does Sony continue to stand a chance against high-end competitors? Or should they get into the value flagship segment where they can differentiate themselves through design. Let us know in the comments section.

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