Thursday, October 03, 2013

Sony Mobile to double production capacity in Brazil in 2014

Sony Mobile plans to double its production capacity of cell phones in Brazil next year, a strategy to enlarge its participation in one of the markets where the fastest growing brand in the world, said company President for the country.
In the plans of the mobile devices division of Sony is increasing portfolio of devices with focus on third-and fourth-generation technology (3 g and 4 g), and take advantage of the planned increase in the consumption of the country with the World Cup.
"We could be selling more. Today we have a situation of a good problem, we have more demand that our production capacity, "said Ricardo Junqueira, President of Sony Mobile Brazil, without disclosing numbers.
"We are studying all alternatives," said the Executive, when asked about a possible utilization of production capacities of the Division of electronics in Manaus in the expansion of production of mobile phones in the country.
Currently, Sony's Mobile models are produced under contract with Foxconn, in a factory in São Paulo devoted exclusively to the products of the brand.
Second Junqueira, a possible increase of the contract with Foxconn, rather than own production by Sony Mobile, is also being studied. "In the coming months we should have a conclusion (...) Obviously, the Foxconn is a great partner in our Brazil and worldwide, "he said, without giving details about the current level of production in the country.
The Executive's 15 years in the Sony Group and assumed command in March of the newly established Division in the country. Before the overhaul of the unit, the Brazil operations were commanded by a division that brought together the whole Latin America.
With the redesign, the company may accelerate in Brazil to launch models announced abroad, of up to three months for four weeks, at the most, "said Junqueira.
The company, which in Brazil occupies fifth position among the largest manufacturers of smart phones, plans to become the third largest segment, although not reveal specific information about participation. Sought, the GfK market measurement firm reported that may not disclose data on slices of companies in the segment.


In the world, the Sony Mobile, which produces mobile phones with the Android operating system, Google has the Samsung American and South Korean Apple, which most recently released iPhone model aimed at emerging markets such as India and China.


The time of formation of the Sony Mobile is favorable to the company, which can be encourage to problems experienced by rivals.


This month, the Canadian BlackBerry signed agreement to be sold to an investment fund for 4.7 billion dollars and will close its capital and Nokia, former leader in smartphones, cellular area was sold to Microsoft for 7.2 billion.


"Some competitors are in a transitional period, so that we can glimpse the need to accelerate," said Junqueira.


CHEAPER


The enlargement portfolio strategy is also being adopted by Sony Mobile in Brazil, where the company joined this year in the category of price of 499 reais, with model capable of operating with two cellular operators chips. Until 2012, the cheapest model by the company cost 799 reais.


Second Junqueira, the segment of appliances up to 499 reais represents more than 70 percent of the Smartphone market from Brazil, which has expanded the company's operations in the country. There are no plans for the short term the company offer of handsets below that level.


He said that the recent appreciation of the dollar against the real hasn't generated significant increases in product prices in the sector in the country, but this may be revised. "In the short term, it is difficult to reposition prices (...) But if you keep these heights, we will see. "


"But it's not a variation of 10 to 15 percent in price which could affect demand in Brazil. This can affect in more mature markets. "


Despite the slow growth of the Brazilian economy this year, Junqueira argued that the expectation for the Smartphone market in the country is to grow to 19 million units in 2012 to 29 million this year, the equivalent to a turnover of 18 billion reais for the sector.


For 2014, the estimate is 36 million smartphones and 23 billion reais in revenue. In tablets, the forecast is 7.2 million units in 2013 and 2014, according to 8.9 million in data from the IDC research firm, cited by Sony.


"There is nothing that signals that the Brazilian market go in the next 12 to retract 24 months (...) If you go to 34 million units in 2014, will still be a strong growth, "said Junqueira. He exhibited models of premium smartphones, such as the Z1 and Z Ultra, which will be launched starting in October with digital television resources, uncommon in the segment.


The company is expanding the portfolio in the country in 3 sets in 2012 to 9 this year, including a tablet imported. For next year, should expand the volume of models released beyond the number this year, Junqueira said, adding that eventually, the tablet can also be produced in the country.
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