Sony Change Could Leave Samsung As The Only Global Android OEM Still Doing It All

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Summary
- Sony ends in-house smartphone manufacturing, outsourcing all Xperia models.
- The Sony Xperia 1 VII marks the start of Sony’s fully outsourced flagship production.
- Sony joins Apple and Google in using third-party OEMs to scale phone production.
Companies opting to use third-party partners to manufacture their smartphones isn’t a new concept. Apple and Google design their devices, but outsource construction to different companies. Outsourcing saves money by leveraging lower labor costs. It also means lower overhead, because companies like Google and Apple aren’t responsible for the physical plant costs or logistics. It also means production can be scaled rapidly, an advantage for companies that require high volumes.

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According to reports, Sony is joining the list of companies using third-party manufacturers (via GSMArena). It had already outsourced the production of its midrange models. Now, the company is adding its flagship smartphones to the list, meaning Sony will no longer manufacture any of its phones. It’s not an unusual move, and the report states that the recent Sony Xperia I VII was already part of this plan. Quality doesn’t seem to be affected by this latest release, but it’s a clear shift for Sony.
Sony has already left the US market behind

I used to enjoy Sony Xperia smartphones. The company brought something different to the marketplace, often focusing on pro-level camera features. The original Sony Xperia 1 featured a 4K OLED display and a taller aspect ratio, making it fantastic for watching widescreen movies. I never make a huge deal about the jump from a 1080p display to QHD, but you notice the bump up to 4K. I also miss Sony’s midrange phones. I enjoyed my Xperia Z3 Compact from over a decade ago, and I wish Sony were dedicated to bringing more smartphones to the US.
I don’t anticipate problems with Sony outsourcing its smartphone production. The company’s high prices for its flagship models already limit their appeal to a niche market. It makes sense for Sony to offload manufacturing, as they can ramp up or limit production as needed. The move leaves Samsung as the only major Android manufacturer to build its phones. Samsung has already invested the required capital, so it makes sense for them to leverage that as needed.
I regret Sony’s decision to leave the US market. We’re starved for competition at the flagship level. Although Sony’s flagship phones are expensive, they offer a much-needed Android alternative, especially if you require a phone for video production. I hope Sony’s outsourcing of production is a sign that it may return someday, but I’m not holding my breath.
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