I’m intrigued by Sony’s lowered estimates for their smartphone sales during the 2014 fiscal year. Originally pencilled in as 1.8 trillion yen, the Japanese company have dropped this to 1.5 trillion yen. What has brought this on? Samsung.
The Xperia range of Android smartphones has been making steady improvements, with the current flagship Xperia Z proving to be a solid mid to high end handset. I found the handset to be competent and capable when I reviewed it recently, although others have queried some areas of the handset, particularly the quality of the screen.
But the projected drop in profits will not be down to the reception of this handset, but the handsets to follow. I find it hard to think that Sony won’t be able to follow up the current Xperia range with a modern handset that meets the expectations given the improvements between the Xperia S, T, and Z over the last year.
I think it comes down to another factor in the Android market. While the OS has a significant market share level, the majority of profits in the Android space flow towards Samsung and the Galaxy range of handsets and tablets. Sony’s handsets are going to be in direct competition with the Galaxy S4 and whatever ancillary models Samsung will bring out over the next year. That’s not an easy battle to engage in – especially when you consider the levels of marketing spend that Samsung employ.
Sony’s note on profits is more than likely a comment on the strength of Samsung and the Galaxy S4′s ability to fly off the shelves, rather than a weakness in Sony’s upcoming portfolio.
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