More Problems Emerge For Sony As Sales Slump
Struggling Japanese Company Sony, who walked one of their most senior Australian executives to the door recently is facing new problems in their sensor business which is under intense pressure from Samsung.
Overnight the Company said that sales of their sensors that are found in millions of smartphones and cameras, are set to fall by 11.8% up from the 6.5% they estimated last month.
They are blaming a fall in demand for handset applications as global handset sales are projected to shrink by 10% in 2020, according to DigiTimes Research.
They are also facing increased competition from Samsung who has won contracts from Apple recently to supply CIS Sensors.
DigiTimes said that CIS sales have contributed over 86% of total revenues of Sony’s Imaging and Sensing Solutions (I&SS) business division in the past five quarters, and the estimated sales shrinkage will lead to an on-year reduction of 65.6% in fiscal 2020 operating incomes for the I&SS unit.
Sony has cut its budget for a three-year investment plan ending March 2021 by 12.9% to US$5.84 billion) from JPY700 billion. It is also actively exploring new clients to offset the loss of orders from Huawei, and developing AI-enabled CIS products in cooperation with Microsoft to boost competitiveness in the market, while also contracting TSMC to fabricate 3D-stacked image signal processors, according to DigiTimes Research.
At the moment, Sony and Samsung Electronics are the world’s top-2 CIS vendors, together commanding over 70% of global CIS supply.
Samsung has successfully leveraged its memory lines to conduct cost-effective production of CIS devices that boast high pixel specs and lower prices, attracting strong patronage from Chinese handset vendors. The Korean vendor has zeroed in on ToF sensors as the next main CIS application outlet.