The self-described latecomers to the smartphone market are shaking up things, as Sony's current president of mobile operations is moving out to make room for another senior executive to try to steer the unit toward profitability.
Hiroki Totoki will serve as president and CEO of Sony Mobile Communications come Nov 16. Totoki is moving from his current role of managing Sony's corporate planning, finance and new business creation department to replace Kunimasa Suzuki.
Suzuki will move into the role of executive vice president for Sony Entertainment Inc.
"In light of the global mobile market that is rapidly becoming competitive and difficult, we need to make our business profitable," a Sony spokeswoman said. "Chief Executive Officer Kazuo Hirai judged Mr. Totoki, who has a proven track record in turning the business profitable, is the most suited for the job."
The news of the shakeup comes just a day before the company is expected to report finances for its most recent quarter. The company is expected to announce it's lowering forecasts for yet another quarter, as its mobile division continues to struggle to move sell handsets.
On Sept. 17, Sony lowered expectations for its mobile division when it readjusted its sales forecast for the rest of its fiscal year, which ends in March 2015.
Sony's previous midrange plan for its mobile communications (MC) division was based on sales that no longer appear obtainable, the company indicated.
"Under the new MRP, the overarching strategy for the MC segment has been revised to reduce risk and volatility, and to deliver more stable profits," stated Sony (PDF). "This revision includes changing the strategy of the MC segment in certain geographical areas, concentrating on its premium lineup, and reducing the number of models in its midrange lineup."
Sony has been steering away from low-end handsets, focusing on products that sit firmly in the midrange and even threaten higher-end mainstays. In September, when expectations were high for the Xperia Z3, the outgoing Suzuki said Sony's mobile unit needed to move premium handsets to keep the division afloat.
"We are a latecomer to the smartphone market and have a lot of new technology bubbling up inside of the company," said Suzuki. "We want to show it off and use it to be more competitive. Every six months we find many, many areas where we can improve in both hardware and software, but it's only sustainable as long as we are growing in the premium product market."
