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Sony focuses on high-end smartphones to take on iPhone
Sony's chief executive has signalled that the firm plans to adopt an Apple-like strategy of focusing on the high-end as it aims to turn its smartphone business into source of growth.
“That’s why we are in this business, and that’s why we invested heavily in the business," said Kaz Hirai, Sony's 52-year-old chief executive, who took over last year.
At CES in Las Vegas last week, Sony caused a splash with the first fruit of its new focus, the waterproof Xperia Z. The device was warmly received as evidence as an effort to restore Sony's faded reputation for excellent build quality and design.
The minimalist design is the first that has been created wholly by Sony, which ended its partnership with Ericsson slightly over a year ago. The troubled Japanese giant also hopes to use its expertise in cameras - it makes the sensor for Apple’s popular iPhone - and in screens to encourage users to adopt its new device.
Sony has a lot of ground to make up on Apple, which despite persistent rumours of a lower-cost iPhone, is still focused on the high-end, and Samsung, which produces dozens of smartphone models, for all pockets. The Korean giant outsells Sony by six to one.
“It’s going to be hard for Sony to catch up,” said Hideki Yasuda, an analyst at Ace Securities Co. in Tokyo. “Still, the market is expected to continue growing, and that will probably enable Sony to boost sales.”
Mr Hirai said he had decided to abandon the development of non-smartphones, a business its defunct joint venture with Ericsson pursued enthusiastically.
"We basically are out of the feature-phone business and in the Android-based smartphone business," he said.
The decision to take on Apple, and Samsung's popular high-end Galaxy range, directly attracted some criticism, however.
“Hirai’s plan to move the unit into profits seems to be a pipe-dream,” said Amir Anvarzadeh, an equity manager at BGC Partners. "Competition in high-end smartphones is only going to get tougher."