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Sony Hit By New Xiaomi-Samsung Deal

Sony has been dealt another blow after Chinese smartphone maker Xiaomi announced it would ditch the company’s camera sensors for rival Samsung on new phones.

The Japanese company’s imaging division, which includes the popular mobile sensors, has been a key contributor to Sony’s earnings in recent years, bringing in US$455 million profit for the most recent quarter and offsetting losses in other divisions.

Xiaomi is the fourth largest seller of smartphones globally and entered the Australian market through its online store earlier this year.

According to Bloomberg the company will now partner with Korean tech giant Samsung for a 64MP camera in future smartphones from the company’s budget focused Redmi division.

The two companies will also collaborate on developing next-gen camera technology, possibly including the under-screen camera Xiaomi has been developing.

The tie-up gives Samsung another way to carve off a slice of the large Chinese market through the supply of smartphone components, while the company’s smartphone sales have been drying up in the nation as Chinese customers flock to increasingly competitive domestic manufacturers like Huawei and Xiaomi.

Sony is responsible for the sensors used for increasingly popular 48MP smartphone cameras, which use a technique known as “pixel-binning” to combine four pixels into one and produce a better quality 12MP image.

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