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Sony reportedly looking into new ventures, partnerships and sales for their mobile division
Sony’s mobile division has been suffering over the past few years, and the company may be looking into a new venture to turn their business around. In a recent report, Sony is said to be exploring other options including new business partnerships and even a sale when it comes to the company’s mobile division. The report from Reuters doesn’t name any specific deals or avenues Sony is looking towards, but we do know that the electronics giant is looking for new ventures to save their dying mobile branch. Sony CEO, Kazuo Hirai, explains that “the mobile and TV businesses both require a drastic overhaul.” He goes on to say, “Without drastic reforms such as joint ventures or alliances, they will both be in the red three years from now.”
Sony has been largely focusing on high-end mobile phones and cost cutting over the past few years, and it’s apparent that these attempts to save money aren’t warranting any results. At CES 2015, Hirai elaborated on the company’s status to a group of reporters:
Electronics in general, along with entertainment and finance, will continue to be an important business. But within that there are some operations that will need to be run with caution – and that might be TV or mobile, for example.
All of these alternate business ventures haven’t spawned completely out of the blue, though. In late 2012, Sony moved its headquarters to Japan and vowed to cut 1,000 jobs by the year 2014. The effort didn’t produce many results because Sony later reported a $1.7 billion loss due to poor smartphone sales in late 2014. If that didn’t make a big difference, Sony has also recently planned to slim their smartphone line down to hopefully return some sort of profit.
Sony looking into other business opportunities seems to be a last-ditch effort on Hirai’s part to turn the company’s mobile division around. For now, only time will tell what the company will do to increase profits.