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Sony estimates $2.14bn loss for smartphone business

We live in a world dominated by Android, itself being dominated by Samsung. So it’s no surprise that many Android OEMs are struggling, including Sony. The company has quadrupled its forecast “expected losses” for this fiscal year.

Sony is not feeling much optimism with regards to its smartphone business and as such it has revised its forecasts to account for a $2.14 billion loss in this market for the current fiscal year. While some of that money will be lost by other divisions, the company is saying that strong competition from Apple and Samsung as well as a downturn in the market are the things to blame for the new forecast.

However that’s not to say Sony is moving out of this business. In fact the company is doubling down on its high-end products, such as the praise-worthy Xperia Z line.

This revision includes changing the strategy of the (mobile) segment in certain geographical areas, concentrating on its premium lineup, and reducing the number of models in its mid-range line up.

It’s interesting to watch this market dynamic as all major Android OEMs, with the obvious exception of Samsung, are struggling to gain and keep market share amid declining margins, while smaller OEMs are seeing success on the local scale.

Source: Business Insider | Image via Sony

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