Sony closes smartphone plant in China to cut costs

Sony closes smartphone plant in China to cut costs

Sony is closing a smartphone plant in China and shifting production to Thailand. 

According to Reuters, production will cease by the end of the month and the decision is not related to the ongoing U.S-China trade war. 

Sony will shift production to a plant in Thailand, but the company has plans to outsource some production to contract manufacturers. 

While some analysts believe Sony should sell its struggling mobile business, the Japanese company states that it has no intention to do so and believes smartphones will be a key part of 5G networks. It aims to make the mobile business profitable as early as 2020. 

Sony has a global market share of less than 1% with shipment of 6.5 million units in the current financial year. 

Source: Reuters