Sony has been looking to bounce back from falling sales in its electronics division for years. More than a decade of decline has plagued this once invincible branch of the company, but it seems that it’ll be smartphones, and not the PlayStation, that will bring Sony back to tip-top shape.
On Thursday, according to The Globe and Mail, Sony predicted smartphone sales to rise more than one-fourth to 42 million from now until next March. This is mainly due to the fact that the Xperia Z smartphone has exceeded initial sales expectations since its launch in January, seemingly leading the way for the electronics company. Sadly, sales of its digital cameras and PlayStation consoles are expected to decrease by double-digit rates.
“It (42 million) does seem like a lot. It’s that smartphones are high-spec and production costs should be hefty, so the company has to sell a lot to be profitable in the business,” said chief fund manager at Ichiyoshi Asset Management Mitsushige Akino.
It’s a big bet, but one that appears to be turning out well for Sony. The company plans to make a profit of ¥230-billion ($2.33-billion U.S.) this business year off phones alone. It was Kaz Hirai in 2012 who acknowledged mobile products, gaming, and digital imaging as the three pillars to the rebound in consumer electronics. However, it looks to be the phones leading the charge.
With the PlayStation 4 expected to launch this holiday season, it’s unknown what the landscape will look like for Sony by next March. For now, though, the smartphone business is booming.
