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Sony to shift production to Thailand, shut down China plant

28 March 2019 2

Sony Corp is reportedly planning to close its smartphone plant in Beijing, China in the next few days, in a bid to cut costs of its loss-making business, stated a company spokesman. Sony will reportedly shift its mobile production to its plant in Thailand which will halve its costs and help turn its smartphone business profitable again.

The spokesman stated that the decision was not related to the ongoing Sino-U.S. trade frictions. Sony’s smartphone business has been declining over the years due to the emergence of new players and increased competition. The company has seen a loss of 95 billion yen ($863 million) for the financial year ending this month.

Some analysts have stated that the company should see its business amid acute price competition with Asian rivals. The company’s global market share has shrunk to less than one percent, and it shipped just 6.5 million units this financial year mainly for Japan and Europe.

However, Sony has stated that it doesn’t have any plans to sell its smartphone business. It says that smartphones will become central to technologies for fifth-generation wireless networks, while cars and various devices would be connected. Last year Japanese electronics companies, Fujitsu Ltd sold its mobile phone business to investment fund Polaris Capital Group after suffering losses for years.

South Korean giant Samsung had also closed one of its plants in China, due to a slowdown in the smartphone market.



Sony to shift production to Thailand, shut down china plant
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Samsung's decision to close the plant in China was due to a slowdown in mobile business or their business having a tough fight against the likes of Xiaomi?


Whatever be Samsung's reason, one thing is certain that Sony is facing a tough time in the mobile division for a few quarters now, so much that we are talking about them "selling the mobile arm."


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