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Will This Be the Next Company to Exit the Smartphone Market? | The Motley Fool

If you’ve been paying attention to Sony (NYSE: SNE ) over the past half-decade or so, you know it hasn’t been a good run for the company. If anything, the decline of Sony can best be explained by the fall of its most-famous product: the Sony Trinitron TV. Once considered the top-of-the-line television, the brand has been disrupted by cheaper, good-enough models from Samsung, LG, and Vizio. Even including an amazing run over the past year, the company still finds itself trailing the greater S&P 500 over the past five years. Here’s some visual context:

More broadly, the company has failed to accurately assess changes in their various industries. In the aforementioned television and personal computer market, the trend was one toward commoditization, whereas Sony continued a premium-pricing strategy. However, in the all-important smartphone market, the trend has been mostly bifurcated: a high-end market dominated by Apple and Samsung and a low-end commoditized developing-country market.

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Will This Be the Next Company to Exit the Smartphone Market?

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