Sony Mobile to Look Past Brazil

Japanese technology company, Sony, announced that their smartphone business will "defocus" in the US, India, China and Brazil. The announcement was made during the recent investor day in Tokyo.

It is believed the decision is to reduce the major operating losses of the company's smartphone division in these countries. In the case of Brazil, the country is going through an economic crisis not seen since the 1930s. Inflation is rampant and consumer confidence is low. Furthermore, the country's currency, the Real, has been greatly devalued against other currencies, such as the dollar, meaning multinational companies would be forced to increase prices significantly to make up the difference.

Overall, Sony;s global average annual growth of the smartphone market dropped 1.4% because of slow growth in emerging markets, like Brazil. Emerging markets account for 45% of the volume market.

Despite directing their business to East Asia, Europe and the Middle East, Sony will maintain it's status in Latin America.


Source: University Herald Sony Defocuses on Brazil