Sony continues its slip on a slope, as word got out that the Japanese firm reduced its TV and smartphone orders to Taiwan production partners. Slow sales of LCD TVs and smartphones have generated this approach.
An adjustment of the outsourcing policy was thus due, with this move affecting Taiwanese ODM/OEM partners, that include the likes of Foxconn Electronics, TPV Technology and Arima Communications, say industry sources. Sony expects the mobile segment to generate revenues of up to $8.33 billion in fiscal year 2017, which is kind of a remote prediction if you ask me.
The operating margin will improve 3 to 5% compared to negative 16.3% in the recent time frame. Sony has been outsourcing entry level LCD TVs and smartphones to Taiwanese partners for a while, but most of the high end products have been made in house, still. Entry level and midrange smartphones will be affected by the decrease of orders to the company Arima in 2015.