Sony's smartphone sales volume FY 2016-2020
The smartphone sales volume of Sony Corporation consistently decreased in recent years, reaching a value of 2.9 million units in fiscal year 2020. The company's smartphone sales dropped by 3.6 million units in the last two years.
Competition is becoming tougher
According to news reports, Sony’s struggle in the mobile communications unit is closely related to decreased sales in Europe, Japan, and Latin America. One reason for this development can be found in the growing competition by manufacturers like Samsung, Huawei, and Xiaomi. Xiaomi and Oppo have entered the European market in recent years, putting more pressure on Sony. While the company does well when it comes to its game and network services, the annual sales of Sony's mobile communications segment, which incorporates smartphones and internet-related services, decreased significantly.
Changing attitudes of consumers
The global smartphone market has repeatedly been described as saturated. While there are some fluctuations throughout the years, even Apple and Samsung at times had to report shrinking profits. As current smartphone technology is already advanced, consumers are seeing less technological improvements in products, leading to fewer incentives to buy a new phone with only minor differences for a higher price. The outbreak of the coronavirus (COVID-19) pandemic also contributed to changes in consumer attitudes. Sony stated in 2020 that the high-end smartphone market was contracting as customers preferred lower-priced models.
Competition is becoming tougher
According to news reports, Sony’s struggle in the mobile communications unit is closely related to decreased sales in Europe, Japan, and Latin America. One reason for this development can be found in the growing competition by manufacturers like Samsung, Huawei, and Xiaomi. Xiaomi and Oppo have entered the European market in recent years, putting more pressure on Sony. While the company does well when it comes to its game and network services, the annual sales of Sony's mobile communications segment, which incorporates smartphones and internet-related services, decreased significantly.
Changing attitudes of consumers
The global smartphone market has repeatedly been described as saturated. While there are some fluctuations throughout the years, even Apple and Samsung at times had to report shrinking profits. As current smartphone technology is already advanced, consumers are seeing less technological improvements in products, leading to fewer incentives to buy a new phone with only minor differences for a higher price. The outbreak of the coronavirus (COVID-19) pandemic also contributed to changes in consumer attitudes. Sony stated in 2020 that the high-end smartphone market was contracting as customers preferred lower-priced models.
