From DailyTech: While some worried that it might pull out of the mobile market amid struggles, Japanese OEM Sony Corp. (TYO:6758) has instead delivered a major show of confidence announcing plans to open a brand new third mobile phone factory.
The plan is intriguing for a number of reasons.
First, it comes hot on the heels of headline-grabbing remarks from company CEO Kazuo Hirai. Hirai had said at the start of the month: "We will continue with the business as long as we are on track with the scenario of breaking even next year onwards. Otherwise, we haven't eliminated the consideration of alternative options."
Many viewed that one year profitability ultimatum as a signal of the Xperia smartphone brand's impending demise.
But with Sony committing to a long term major manufacturing expenditure a full market pullout looks much less likely. It now appears that if Sony does alter course it will look to do so in a less drastic way than some were expecting.
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