There’s been no shortage of talk among news sites, pundits, and fans about the future of Sony Mobile. Even Sony leadership has given mixed answers regarding the money-losing division’s future, but today’s news should at least in the short term (next 5 years) put to rest any doubt that Sony will continue to operate in the mobile business with the announcement of a new smartphone factory in Thailand.
More details after the jump.
Being constructed by subsidiary Sony EMCS, this new plant, located in Pathum Thani Province (not pictured above) will be the first major mobile factory from Sony in 20 years. The new smartphone centric plan is set to go live in fiscal 2016 with the capability of producing several million units each year.
That number while not high like what Foxicon can produce is likely perfect for Sony who isn’t doing the numbers Apple is doing. As a comparison, iPhone 6s sold over 13 million units in launch weekend while Sony Mobile will likely sell 30 million units in its FY 2015.
Still, it’s likely that the factory can ramp up production should the need rise. This new factory also gives Sony a flexibility they previous lacked. The last mobile factory Sony built was in 1995 in Beijing through a joint venture with three local partners. Of the three, Sony owned a 51% interest. Now with a factory completely dedicated to their mobile arm, Sony can maintain a higher quality control and a more nimble production line that will allow them to make changes till the last minute.
As Apple has proven time and time again, the key to controlling your destiny is by owning as much as the process as possible. Though moving far slower than any of us would like, in the past 5 years, Sony has regained control of their smartphone division by breaking ties with Ericsson and bringing design all in house in Japan. This latest move further plays into that arc by allowing Sony to design and manufacture under one roof.
Discuss:
Do you think there is any downside to Sony owning their smartphone manufacturing operations?
[Via Nikkei]