BEIJING/TOKYO- Sony Corp will close its phone plant in Beijing inside the next few days, an employer spokesman stated, as the Japanese electronics giant pursuits to cut prices within the loss-making enterprise.
Sony will shift production to its plant in Thailand in a bid to halve costs and flip the phone enterprise profitable inside the 12 months from April 2020, the spokesman said on Thursday. He stated the decision become not associated with Sino-U.S. Trade frictions.
Sony’s cellphone business is considered one of its few vulnerable spots and is bracing for a loss of ninety-five billion yen ($863 million) for the financial year ending this month.
Some analysts say Sony should promote the business amid acute price opposition with Asian rivals. The employer has a global market proportion of much less than one per cent, shipping only 6.5 million gadgets this economical 12 months especially for Japan and Europe.
But Sony has stated it has no intention to sell because it expects smartphones to be primary to technologies for fifth-era wireless networks, in which motors and various gadgets could be related.
Among Japanese electronics groups, Fujitsu Ltd remaining yr bought its cellular telephone enterprise to funding fund Polaris Capital Group.
That left only three Japanese telephone makers – Sony, Sharp Corp and Kyocera Corp – in an international market dominated by Apple Inc, Samsung Electronics Co Ltd and cheaper Chinese rivals.
Samsung past due last 12 months stated it would stop operations at one in every of its cell smartphone flora in China, as its income in the international’s biggest phone marketplace slumped.