In an effort to cut down on costs and expand its outreach in the Apple Inc. dominated US market, Sony Corp (ADR) (NYSE:SNE) has reached out to Softbank Corp (TYO:9984) and her US associate Sprint Corporation (NYSE:S) to offer their flagship Xperia Z3 to consumers.
This will be the first time Sprint Corporation (NYSE:S) is selling a Smartphone associated with Sony Corp (ADR) (NYSE:SNE). Sony Corp (ADR) (NYSE:SNE) hopes that by working with Sprint Corporation (NYSE:S), they will embolden their influence in the US market and revive the US based company, which has been facing stiff competition from other service providers like AT&T Inc.
In a report by Reuters, Softbank Corp (TYO:9984) is set to have the Smartphone in their stores by the end of the year. The same information is also shared in an article on Bloomberg’s official website.
Sprint Corporation (NYSE:S) was acquired by Softbank Corp (TYO:9984) in a bid to expand its mobile operations in the US. Offering Sony Smartphones is seen as a viable way to retain its current market share and possibly expand their grip.
Masahiro Ono of Morgan Stanley MUFG Securities believes that it’s a move to the right direction as it will help bolster Sony’s relationship with a carrier in a very large and active market.
However, the possibility of such a prospect isn’t shared by all analysts, some of whom feel that Sony Corp (ADR) (NYSE:SNE) won’t be able to penetrate the market because of its poor relationship with a number of mobile carriers.
Deutsche Bank analyst Yasuo Nakane said about the deal,
“I can’t see this making much of a difference,…,Even if they put out a phone on Sprint, Verizon is the priority any way you think about it.”
This article has been written by Victor Ochieng.
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