Sony’s smartphone business has been struggling, and recent data suggests that the company’s Xperia line is facing significant challenges in Japan. Amidst the dominance of iPhones and the emergence of strong competition from Google’s Pixel devices, Sony’s mobile sales in Japan have seen a sharp decline of 40% in 2023, with further drops expected this year. This decline comes at a time when the smartphone market in Japan remains vibrant, with a population of 125 million and annual smartphone sales reaching 30 million.
As a former Xperia user who recently switched to a Google Pixel, I’ve experienced firsthand the shift away from Sony’s smartphones. The allure of Google’s Pixel Fold, with its innovative foldable design, played a significant role in my decision to switch. Unlike Sony, Google offers foldable devices, and other Chinese brands that contribute to the dynamic Chinese market are not readily available in Japan.
Despite its struggles, Sony remains committed to its smartphone business, emphasizing its importance within the broader Sony Group’s strategy. The company sees its communication technology as a vital element in connecting creators and customers and providing entertainment regardless of location.
In an attempt to revive its Xperia line, Sony has focused on producing premium, niche products with cutting-edge features. For example, the Xperia 1 V boasts a cinematic 21:9 4K HDR OLED display and high-resolution audio outputs. However, these premium features have not always translated into success, with issues such as fast battery drainage and compatibility issues with certain content formats.
To address these challenges, Sony has explored new strategies, such as selling handsets directly to consumers and targeting younger buyers. However, with Apple’s iPhone dominating the youth market in Japan, Xperia’s main user demographic remains people in their 40s or older.
Moving forward, industry experts suggest that Sony may need to shift its focus to the mid-range smartphone market, where it can compete more effectively against international players like Apple and Samsung. This approach could offer a more sustainable path for Sony’s smartphone business, given its limited resources compared to its competitors.
Ultimately, as Sony continues to face declining smartphone sales, it will need to reassess the viability of its mobile division and determine whether the benefits justify its continued investment in the business.
