New Sony Mobile head Hiroki Totoki has been given the ‘mission’ to make the business profitable. Totoki, who will take the reins officially on November 16th will be expected to strengthen the relationship with mobile carriers and enhance the appeal of the brand’s products.
Totoki’s ‘mission’ was revealed during Sony’s 2nd quarter conference call, in which the manufacturer posted a loss of JPY85.6bn (£470m), this came despite a sales increase of 7.2%. Although the mobile division was by far the worst performer, standing out as the only part of the business that had not improved year-on-year.
Under the new leader’s guidance Sony is aiming to stabilise and improve the profitability of the mobile division.
The new policies are a result of the mid-range plan that the brand announced in September. When it stated the intention of ‘concentrating on its premium lineup, and reducing the number of models in its mid-range lineup’. These measures were designed ‘to reduce risk and volatility, and to deliver more stable profits’.
Speaking at Sony’s 2nd quarter earnings call as transcribed by Seeking Alpha Kenichiro Yoshida, Sony’s CFO said: ‘The mission that Hirai [Sony CEO] has given Totoki is to transform Sony Mobile based on the midrange plan that we reviewed in September. Hirai wants Totoki to strengthen our relationship with mobile carriers and enhance the appeal of our products. Under Totoki's leadership, we plan to stabilize and improve the profitability of the mobile business. We have already begun the broad business transformation plan, and Totoki will explain the direction of the plan at the IR Day on November 25.’
Hiroki Totoki: ‘My mission is the Sony Mobile to become a profitable company. That is my mission. And at least I'd like to emphasize the, as we mentioned, the competitive environment in the mobile business is changing rapidly. So I intend to change the structure so as to manage the business in a rapid manner. And we try to develop the restructuring plan as soon as possible. That, I would like to state now.