Sony shutters Beijing handset factory - Mobile World Live

Sony shutters Beijing handset factory

29 MAR 2019

Sony moved to cut costs at its struggling Mobile Communications business by shutting a smartphone factory in Beijing and shifting production to Thailand, Reuters reported.

A company representative told the news agency the closure is part of aims to turn around its loss-making handset business by April 2020 and was not related to US-Chinese trade issues. The company didn’t disclose the number of jobs which would be affected.

Earlier this week Sony announced a restructuring, with its mobile unit to become part of the new Electronics Products & Solutions division from 1 April, alongside the company’s Imaging Products & Solutions and Home Entertainment & Sound businesses.

Reports this week noted that despite its strong digital imaging credentials, the company’s smartphones have failed to impress when compared with rivals.

The mobile unit suffered a significant decrease in smartphone shipments in its fiscal Q3 ending 31 December 2018, shipping 1.8 million units compared with 4 million in the comparable fiscal 2017 quarter. Sales of JPY137.2 billion ($1.3 billion) were down 37 per cent year-on-year, and the company reported an operating loss of JPY15.5 billion for the business compared with a prior-year JPY15.8 billion profit.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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