Sprint Corporation (S) and Softbank Corp (9984) Will Distribute Sony Corp (ADR) (SNE) Xperia Z3 Smartphone In Their Stores

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.

Sprint (S)

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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