Sony will remain in China despite job cuts and stiff competition

Analysts expect Sonyto continue to have a strong presence in China’s smartphone market, despite its announcement last week of plans to reduce its exposure to the world’s largest handset market by cutting jobs. Market speculation suggests the Japanese electronics giant is buckling under growing pressure from aggressive Chinese smartphone vendors.

Sony is expected to remain in China’s smartphone market even after announcing plans to cut jobs and amid increasing local competition. Following a dismal quarterly earnings report last week, the Japanese electronics company said it would no longer make smartphones specifically for the Chinese market and was slashing the headcount of its mobile communications business by 15 percent, or about 1,000 jobs. How many of these will be in China is unknown, although a local employee said job cuts could impact its development and sales operations, said China Daily.