Electronics giant Sony is likely to make a decision on its struggling smartphone division next year, with the company open to considering options if the unit fails to turn profitable.

Reuters reports chief executive Kazuo Hirai said Sony will continue with its smartphone business “as long as we are on track with the scenario of breaking even next year onwards”.

“Otherwise, we haven’t eliminated the consideration of alternative options.”

Sony Mobile recently refreshed its smartphone line up with two new devices in the mid-tier range, after revealing a sharp slowdown in smartphone sales in the company’s first fiscal quarter results.

Sony Mobile saw shipments reach 7.2 million units for the quarter, down from 9.4 million the prior year, which it claimed was the result of “a strategic decision not to pursue scale in order to improve profitability”.

Hirai has managed to turn around the company’s performance at group level by cost cutting and leading an exit from the PC market. However, its smartphone division continues to struggle.

As part of the recent results, the company also revised down its full year forecast for smartphone shipments, which will reach 27 million units, compared to an earlier forecast of 30 million.

Sony smartphones reportedly hold 17.5 per cent of the market in its home country of Japan, and less than 1 per cent in North America.

“I do have a feeling that a turnaround in our electronics business has shown progress,” he added. “The result of three years of restructuring is starting to show. But we still need to carry out restructuring in smartphones.”