Google Pixel’s success might drive the final nail in Sony’s smartphone business

Ben Schoon | May 9 2024 - 1:45 pm PT

Google’s Pixel business is finally seeing some real success, but that might be bad news for Sony, as the company’s Xperia smartphone business is actively shrinking as a result.

Sony has been a player in Android for a long time now, but the company has never been a big name in the market. Only in Japan did Sony really see a level of success, with its offerings on the international market mainly just being viewed as another option, rather than anyone’s go-to brand.

But, as Bloomberg points out, Sony is now struggling even in Japan, and it’s because Google Pixel is replacing it.

Over the past few years Google Pixel has risen in popularity in Japan considerably. In July 2023 Japan became Google’s biggest market for Pixels, and a few months later it was found that Google was actively taking market share away from the iPhone in the country. Earlier this year, another report found that Pixel sales in Japan had grown by over 500% over the course of 2023.

That’s great news for the Pixel, but not so much for Sony’s smartphone business.

In 2023, Sony Xperia sales in Japan dropped by 40%, and it’s expected that 2024 will follow suit. And that’s despite Sonmy having grown its market share in Japan over the prior three years too.

It’s always been a big question mark why Sony keeps making Android phones. At one point Xperia did pull a profit, but as it continues to shrink, the efforts are more likely to turn a loss.

At the very least, though, Sony isn’t throwing in the towel just yet. Not only did Sony forge a “multi-year” deal with Qualcomm for Xperia phones in 2023, but leaks have been showing off the upcoming Xperia 1 VI which Sony has confirmed will be launching on May 15.