Sony did something LG failed to do … make me believe again

The history of the smartphone industry is one of disruption. As Chinese brands have grown and profited, many traditional phone and tech brands have struggled. Blackberry, HTC and Nokia (excluding the HMD “revival”) have fallen apart. LG has been the latest and biggest victim of the fiercely competitive market, losing out after repeatedly trying and failing to reinvigorate its lineup.

Sony seems to be the exception to this rather unfortunate trend. Despite several years of falling to the bottom of the market share charts, the brand that brought us the mighty Sony Ericsson W800 is still in full swing almost two decades later. In fact, the company is on an upward trajectory at a time when others are going out of business.

Against the grain, Sony’s mobile division posted its first profit in five years in the first quarter of 2021. The company achieved this feat by lowering production costs and increasing the average selling price of its phones. As can be seen quite clearly in the insanely steep price of $ 1,299 for its latest flagship Xperia 1 III. It’s not an all-pink picture for Sony though. The company sells fewer smartphones than at any time in the past decade. Only 2.9 million units in 2020, up from a peak of 39.1 million in 2014. But staying in business is what’s important and against all odds, Sony remains alive and vibrant.

Niche appeal compared to the mass market

The comparison between LG and Sony is interesting. Both are huge legacy tech brands that, after initial success in the cellphone market, have invested countless sums of money in their struggling mobile divisions over the past decade. LG finally decided to quit the same year, Sony finally regained profits.

The main difference I can see is that LG never quite set itself on a target market, releasing a wide range of different handsets, some very experimental, with the goal of landing a smash hit. With phones ranging from the extremely experimental LG G5 and Wing to the incredibly safe but oddly named and trendy Velvet G7 ThinQ, it has become increasingly difficult to see who would actually buy LG phones year after year.

Meanwhile, Sony has looked inward, doubled down on its roots, and gone to great lengths to please its target audience with little wit to build a revolutionary smartphone. Sony figured out what it could be good at rather than completely reinventing itself. To LG’s credit, its excellent V series almost found a multimedia niche similar to that currently occupied by Sony. But LG’s phones could never quite keep up with the extremely high price tag of Sony’s Xperia line.

Sony experienced similar problems to LG’s in the mid to late 2010s, with declining sales and market share. The Xperia Z and XZ ranges launched with a messy six-monthly release schedule. There was also a bewildering array of models with very little innovation between them. As you can imagine, the phones have gotten mixed reviews, although Sony has been praised for its excellent audio features and IP ratings.

The Xperia line has turned a leaf with the new Xperia 1 series which focused on correcting previous criticisms without straying too far from Sony’s mainstream audience. We even praised the first generation model for its excellent hardware, even though it was very expensive and flawed. This is where Sony first showcased its 4K HDR 21: 9 OLED display, tri-camera setup, and finally brought back the headphone jack (and keep expandable storage) to market itself as the ultimate media machine.

It took a review or two, but Sony’s flagship Xperia 1 and the more affordable Xperia 5 smartphones were rated fairly well. In fact, its 2020 models were some of our top picks for the year, and the 2021 flagship Xperia 1 III is the brand’s best effort yet, albeit at an even higher price tag. Sony’s formula works (finally).

Our opinion : Sony Xperia 1 III review – Sleek, exhilarating, expensive

Sony’s own figures show it isn’t building phones for mass consumers, but a return to profits suggests it’s not necessary. By leveraging its best-in-class Bravia display, Alpha camera and audio technologies, Sony has shown that it is possible to survive in the fiercely competitive smartphone market by playing in front of a passionate audience.

As LG, Blackberry and others have shown, carving out a sustainable niche is no easy task. Especially since the prevailing winds saw brands run down against profitable Chinese manufacturers. But perhaps we are seeing signs that the industry may go back to the days when brands stood out for unique merits – be it multimedia, games, cameras or other feats.

Sony made me a believer. It is possible to create great smartphones and run a sustainable business without appealing to absolutely everyone. On condition, of course, to find a formula for which there is a real demand. It took years to get here, so let’s hope the business can continue.