Sony’s smartphones unit lost billions in 2014. What’s next?

Gigaom

In September, Sony told analysts that it expected to lose over $2 billion in 2014 thanks to an underperforming smartphone division. Obviously, that’s not sustainable, and on Tuesday, Hiroki Totoki, the head of Sony’s mobile unit, told investors how the company plans to change that next year. The new immediate goal: “To make the business profitable even if we face declines in sales by 20 percent or 30 percent,” Totoki said in the Wall Street Journal.

How is Sony going to turn around a business that’s currently losing billions? One first step is to slash its mobile phone line-up and reduce the number of regions where Sony sells phones. That will likely result in job cuts. Samsung announced a similar plan earlier this month. The emphasis on profits also indicates that Sony is likely to keep its high-end, high-margin Android phones around — like the Xperia Z3

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