Why Sony's electronics brands were closed and what the company is making money on now. Part 1

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The company has lost several areas, but continues to develop. We will tell you below how this happened and what areas are its current priorities.



Sony Ericsson and Xperia smartphones
In 2001, Sony and Ericsson merged their mobile divisions to reduce costs and gain a foothold in the mobile phone market.

The joint company produced many devices aimed at multimedia functions that competitors did not have: music playback, photo taking, a large and color screen, support for GPRS and e-mail.

As a result, Sony Ericsson became an innovator in the mobile market, its share grew, and in 2003, its first profit appeared - $45 million per quarter.



The main popular Sony Ericsson families are:

C and K series (Cyber-shot) camera phones.
W series (Walkman) music phones.
P-series smartphones based on Symbian.
Universal T-series phones with an emphasis on design.
Xperia smartphones based on Windows Mobile and Android.


At its peak in 2009, Sony Ericsson had a 9% share of the global phone market and was the fourth largest manufacturer. But profits from mobile phone sales have fallen sharply, with the company losing more than €750 million in 2009.



By 2011, the situation had worsened: the smartphone had transformed from a niche product into a mass device, but Sony Ericsson had not had time to adapt to the changes. Its market share fell to 2%, and the company was only in 11th place in the list of device manufacturers, writes the BBC.

What went wrong with Xperia and how Sony fixed it
At the end of October 2011, Ericsson sold its stake in Sony Ericsson for 1.05 billion euros. Since 2012, these smartphones have been sold under the Sony brand.



According to analysts interviewed by the BBC, the companies' partnership france number data ran out of steam with the advent of smartphones. Ericsson lacked the right technology for smartphones and was holding back Sony's development, while Ericsson's need to approve product changes slowed down the speed of bringing new devices to market.

In 2013, Sony moved from sixth to third place in the global smartphone market with a share of about 5%. It overtook Nokia, HTC and Blackberry, which were losing ground to Apple and Samsung, writes The Wall Street Journal.

Former Sony chairman Kaz Hira said the company has the necessary capabilities and assets to maintain third place in the growing smartphone segment.

In 2015, Sony had the highest profit per smartphone ($26.17) and the highest average selling price of a phone among all Android smartphone manufacturers — $421.1.

But in terms of market share, the company fell out of the top ten at the same time as Microsoft: every year Sony sold fewer and fewer smartphones after a record 39 million in 2013-2014.

In May 2018, Sony admitted that it could not achieve its smartphone sales goals because it was "not innovating quickly enough."


and decision-making times - in 2017, many smartphone manufacturers showed devices with 18: 9 displays, while Sony caught up with the market only a year later - with the release of the Xperia XZ2 and XZ2 Compact.