what you should Know
- An IDC analyst said in a Bloomberg newsletter that sales of Sony’s smartphone business fell 40% last year.
- The decline is expected to continue as Sony’s Xperia brand struggles to compete with the likes of Apple and Google.
- Sony teased the launch of a new Xperia phone during the May 15 announcement, and it’s rumored to be aimed at a larger audience.
Sony is just days away from launching a brand new Xperia phone, and this reveal sounds like it will have a big impact on what the company’s mobile offerings will look like going forward. According to rumors and leaks, the smartphone is expected to deviate somewhat from Sony’s typical mobile phone strategy of leaning on the company’s photography prowess and targeting the niche and premium markets. The change in strategy comes as Sony’s mobile sales continue to take huge hits, according to data shared in a Bloomberg newsletter.
Masafumi Inbe, an IDC analyst, spoke to Bloomberg about Sony’s struggles with the Xperia, which extended even to its domestic market in Japan. Apple has a strong user base in Japan and was able to launch the iPhone in that market. Now, part of Google’s plan to grow the Pixel is to target markets like Japan as well.
Sony is no longer a household name in smartphones and these developments are further weakening its position in the market. The company is not among the leaders in smartphone shipments and is going backwards rather than forwards. Part of the reason may be the direction of the Xperia brand, which only appeals to a small number of people.
However, changing things up and making the next Xperia 1 VI more mainstream might not be the answer. If Sony can’t compete with the big brands while offering a unique smartphone, why would it compete with a device that feels like a copy of everyone else?
Sony’s mobile device sales are falling fast
The global smartphone market has experienced frequent dips and peaks over the past few years, largely related to fluctuations in the economy and world events. But Sony’s mobile device sales haven’t dipped slightly compared to years past; they have decreased significantly. According to Inbe, Sony’s mobile sales will drop 40% in 2023 compared to the previous year.
Similar cratering is expected this year, Inbe says, which doesn’t bode well for the future of Sony’s mobile offerings. If sales drop by a combined 80% over two years, that would be catastrophic.
Inbe cited Sony’s poor performance in Japan as one of the biggest reasons for sounding the alarm. Sony sells about 1 million phones each year in Japan, Inbe said, where a total of 30 million smartphones are sold annually.
Sony does not report smartphone sales separately in its financial reports, making it difficult to get a complete picture of the business. However, it is clear that mobile devices are not the main business for the company in 2024. However, Sony has not shown any signs of retreating from the smartphone market.
“We recognize that our mobile communications business is not just a phone business, but an important communications technology business that contributes to the entire Sony Group,” a Sony spokesperson told Bloomberg.
“We believe that the communication technology we are advancing with smartphone technology is a necessary element to connect creators and customers and provide entertainment regardless of time and place.”
Something has to give, and if the leaks are correct, that something will be Xperia’s strategy. While Xperia’s current positioning towards ultra-premium camera lovers doesn’t seem to be working, it’s not clear what will are running so late in the smartphone race.
The Sony Xperia brand is targeting a market that almost doesn’t exist
In theory, Sony’s plan for the Xperia series sounds great. The company already makes industry-leading cameras, so why not bring that to the smartphone? While it’s a solid idea, it doesn’t work. This is because the Sony Xperia brand only caters to people in the middle of two major markets.
People who don’t care much about standalone cameras will just grab any flagship smartphone, as the camera on the Google Pixel 8 Pro or iPhone 15 Pro Max will get the job done in most situations. On the other hand, people who are really into cameras will get something like a DSLR or mirrorless camera on their smartphone. The number of people who need more than a smartphone but less than a dedicated shooter has turned out to be small, if Xperia sales are any indication.
As an anecdotal example, I am the exact type of buyer who Must Find the Sony Xperia line appealing. I have a mirrorless camera — apparently from Sony — that I use for work and a bit for play. I’m not into photography, so I use my Sony a6400 in almost automatic modes. All that said, I wouldn’t trade my smartphone or mirrorless camera for an Xperia. For my relatively basic needs, a Sony Xperia smartphone would be a worse smartphone and a worse camera than what I currently use. So what’s the point?
The Zenfone 11 Ultra proves that making the Xperia mainstream won’t solve anything
Unfortunately I don’t have a solution for Sony. It seems that in 2024 there are only a few brands that can really compete for the mainstream market. While it looks like Sony will try to do just that with the next Xperia, it might not be the best option.
We just saw Asus make a similar move with the Zenfone 11 Ultra and the general consensus was not positive. Instead, it showed that Asus has given up a small but vibrant niche to become just like all the other flagship smartphones out there. And despite being one of Asus’ best phones to date, the Zenfone 11 Ultra can’t stand out.
If Xperia tries to compete on an equal footing with Apple, Google and others, it will lose. The brand’s only chance at this point is to stay the course and make niche, unique smartphones that actually cater to a tangible audience, and that’s already becoming a losing battle.
