Sony has named Hiroki Totoki as the new head of Sony Mobile Communications to address the problems that is plaguing the company’s smartphone division. The newly installed head will take over the position vacated by Kunimaza Suzuki who is set to assume as the new executive vice president of Sony Entertainment position on November 16.
The company did its best in releasing new lineup of phones that comes with high-end features but still its smartphone business fizzled out and has registered lackadaisical performance in terms of sales for the past few years.
The company has absorbed a stinging £1 billion loss in the mobile phone market though it posted a 1.2% increase in revenue this year. The culprit is its lack of presence in major markets such as the United States and China. The electronics giant has reduced its sales projection to 41 million units this year and it is $2M lesser than the company’s July forecast.
A big chunk of Sony’s revenue emanated from the robust sales of the PS4 which amassed £1.7 Billion and posted 83% growth in the games division as compared to last year’s revenue. Sony’s devices business is on a roll as it also eked out an impressive 187% growth.
All in all, the company registered a 7.2% increase in revenue but it is mired by an overall loss of £481 million. The company’s negative revenue is caused by the anemic performance of Sony Mobile Communications.
Sony is set disclose its latest earnings today and the company intends to reduce its smartphone shipments. Last March the company made a prediction to ship 50 million smartphones by the end of the year, but it was reduced to 43 million units on its July prediction and today the prediction dropped further to 41 million units.
Now it’s all up to Totoki whether he can bring back the company into the thick of things in the smartphone market or not, as he assumes his new position five days from now.
His most probable decision is to fortify the brand awareness of its handsets in lucrative markets such as US, Europe and China and offer reasonably priced mobile devices.