We’ve only crossed into 2014 but things are really heating up on the Sony Mobile front.
Sony has finally confirmed in an interview recently that they are in talks with Microsoft about offering Windows Phones. This would broaden Sony Mobile’s smartphone catalogue from the current Android-only range. In addition to this, a rumour suggests that the company would present Windows Phones under the VAIO brand and not the usual Xperia label.
The US and China should be seeing much more of Sony Mobile this year. The T-Mobile Z1 S was just the start it seems, as Sony Corp. CEO Kaz Hirai has revealed that the company will be investing big money in the US and China markets in 2014. Further, Hirai disclosed even higher targets in 2014 and 2015 in the mobile division. 2014 might be the year Sony Mobile goes global.
There is more ‘Sirius’ news too. Sony declared before CES in a new year message that it was not yet time for a new flagship, but there are rumours now that Mobile World Congress in February might produce an awesome mobile device. The rumours tell it is US-bound.
Read on to find out the details.
The Windows Phone prospect
Recently there have been rumours of new manufacturers arriving on the Windows Phone platform, stemming from an alleged desire on Microsoft’s part to build support for the platform. Now Sony has confirmed that it is involved in this interview. The same rumours that linked Sony to Windows Phone suggest that any such Sony model would be presented under the VAIO and not the Xperia brand.
We don’t want to be a single OS manufacturer, I don’t think it’s a viable position in the long-term.
Pierre Perron, head of Sony Mobile Europe, acknowledges that the Mobile team is considering Microsoft’s platform and is actively exploring what they could bring to the platform.
Windows Phone may not have the popular appeal of iOS or the blanket coverage of every segment of the market that Android does, but its fortunes appear to be on the rise as year-on-year shipments might seem small but are growing. Research from analysts Kantar show that Windows Phone has hit some milestones in the European markets, overtaking iOS at 16% in Italy, reaching 11.4% market share in the UK and showing further year-on-year growth in Spain, France and Germany. For the 5 biggest European markets alone (308m+), Windows Phone has doubled market share in a year to 10%.
The same research indicates that Latin America is proving a bounty for Nokia-branded phones, as there is a trend of upgrading directly from a feature phone to a Lumia smartphone.
For the US market, research by Kantar shows that Windows Phone stood at 4.6% for the 3 months ending November 2013, so the platform is progressing much more slowly. It seems unlikely then that Sony Mobile would release such a Windows Phone in the US market unless there was distinct appetite for it. The company has taken a ‘safe’ stance in its release strategy on Android.
An interesting note on the US and China markets from Kantar Worldpanel ComTech strategic insight director Dominic Sunnebo:
You don’t have to conquer China and the US to win in the smartphone market, but you do need success in one of them.
It could be that Sony targets the US more than China. Japanese firms are said to be suffering in popularity terms in China (and South Korea) because of political and historical events. Sony might fare better with its more respected brand name and heritage in the US.
Pierre Perron, of Sony Mobile continues:
We enjoy very much a good collaboration with Google, we’ve been working with them for a long time and have a level of maturity with that discussion, that’s good. But at the same time, Google has a relationship with direct competitors.
Time may be running out for competing platforms aiming for the 3rd spot in the smartphone sector, now with Microsoft advancing quickly. After Sony’s declared interest in Firefox OS, some wondered where such handsets were in 2013, but a comment from early in 2013 shows Sony Mobile took an interest in possibly delivering a device to market in 2014:
Our engineers are now working with Firefox OS Mobile and HTML5, evolving technologies which show great potential. In addition, we continue to work with our operator partners, including Telefónica, on a development project with an ambition to bring a product to market in 2014.
Bob Ishida, Deputy CEO, Executive Vice President, Sony Mobile Communications
This comes at an unsual moment: Nokia is being integrated into its new owner Microsoft, the developer of the Windows Phone platform, and a Nokia Android prototype appears (after years of rumours). Even more, rumours are out that Microsoft could tap the original Android OS, the Android Open Source Project (the part before Google gets involved) and develop its own branch of the open source OS. Is that what runs on the Nokia prototype? Sony to Win Ph, Nokia to Droid? So Nokia and Sony are trying life out on the other side?
US, China mobile market offensive in 2014, broader global ambition, TV business recovering
It seems like not that long ago we reported on news about Sony’s intentions in the US market. It appeared if they were backing out, possibly doubling-down investment in its stronger markets. That may not seem so crazy a time when, despite a hugely popular device in the One, HTC is sinking like the Titanic and one-time enterprise showcase BlackBerry is scrambling to delay its near-guaranteed exit from the market. When one-time giants fall, it’s a wake-up call to companies like Sony. It’s a good time to revaluate its position.
Now Sony Mobile seems to have done just that and appears to be heading straight back to the US market, not only with its modified flagship dedicated to T-Mobile in the Z1 S but more is coming according to CEO Kaz Hirai, responding to questions from Nikkei Asian Review
We’ve built the foundations in Japan and Europe, from now on, we’ll put more resources into the U.S. and Chinese markets. I can’t share detailed plans. But now that we’ve decided to go on the offensive, we’ll put money and people into those markets,” he said. “I hope you’ll see the results in a year.
This should clear up the ambiguity on this topic and thankfully it’s recent news (CES 2014) from the top man himself (CEO). We can say for sure that the US and China will see more Sony mobiles this year and Sony Mobile was calculating the most opportune moment to invest in these markets.
This wasn’t the only strategy reveal; Kaz Hirai also exposed ferocious global ambition in the mobile area. In the financial year ending 31 March 2014, the company aims to ship 42m smartphones with a view to 80m handsets ending the same time in 2015. No more selective markets then. Having weathered the storms that reduced HTC, BlackBerry and Nokia to rubble, proving itself to be a survivor, Sony Mobile is ready to take over their ground this year.
He separately noted that their battery business is now proving key to the difference in performance compared with rivals and also that the year ending 31 March 2014 was the crunch time on whether to sell it’s TV business, which is now instead recovering quickly according to Hirai.
Flagship at Mobile World Congress, Barcelona Feb 24-27
Keep an eye on MWC in Spain this year as there could be a flagship reveal according to rumours. The world’s largest mobile exhibition could see the long-awaited ‘Sirius’ model shown to the public (think: The Lion King). The source of this rumour is this tweet:
The codenamed ‘Sirius’ model, which we’ve been following closely, should be available on Verizon according to this rumour. There is increasing belief that the ‘Avatar’ / Z2 model may now be this ‘Sirius’ model. If the ‘Sirius’ model is US-bound only, then the successor to the Xperia Z1 is still hiding.
This would provide evidence of Sony Corp. CEO Kaz Hirai’s statement at CES 2014 that the US will see a lot more of Sony, as detailed above.
If you didn’t see it before, you might like to check out some fun and impressive displays Sony crafted at MWC last year:
Discuss:
Will you buy a VAIO Windows Phone? Can Sony achieve its ambitious global market goals? Sony fans in the US: what’s your reaction to Sony coming back?