Sony, King of New-age Smartphones, Set to Soar
Sony (SNE) announced three new smartphones on Sunday via YouTube. Each brings cutting edge new image and audio sensors, enhanced by artificial intelligence, smarter software and fifth-generation wireless modems.
It’s a strange time for Sony. Its Xperia lineup has always been refined and packed with high quality hardware. Yet, in the West, the Japanese company is clearly playing catch-up to Samsung and Apple in smartphones. Its devices have never really caught on like Galaxies and iPhones.
The new Xperias are aimed at photographers, videographers, cinephiles and mobile gamers.
Say goodbye to grainy video images. The Xperia 1 Mach 2 is a 5G device with a triple camera setup on the back, and a Time-of-Flight (ToF) sensor — a highly accurate distance mapping and 3D imaging tool — for autofocus.
Related post: Beautiful New Galaxy Phones Garner Buzz, Not Business
Sony managers say it is the world’s first smartphone with 20 frames per second autofocus and auto exposure. In laymen’s terms, this means the cameras are recalculating images 60 times per second. And real-time eye autofocus detects and tracks either a person or pet’s eye.
These innovations were born in Sony’s best-in-class mirrorless DSLR cameras. For the first time, the company is moving the technology into the compact sensors used in smartphones.
Videographers will enjoy automated software for motion blur reduction and incorporated 360 reality audio, thanks to hardware decoding. This means audio will seem like it is surrounding the listener.
All these features will enhance the mobile gaming experience. Sony announced a collaboration with Activision (ATVI) and Qualcomm (QCOM) to bring Call of Duty and ultrafast 5G millimeter wave connectivity to its new devices.
Sony recently worked with the NFL and Qualcomm to film an entire NFL football game using the radios from Xperia 1 Ultra devices. The integrated 5G antenna system and generous array of input/output connections made uploads a snap.
The Xperia 10 rounds out Sony’s new lineup. The midrange device is waterproof, has a six-inch screen and will ship in six colors starting in the spring.
Investors should be excited. While the outlook for breaking the Samsung and Apple duopoly is limited, Sony’s latest innovations should strengthen the company’s lead in sensors.
Related post: Dumb Sensors Get Smarter with New ARM Chips
It’s not hard to imagine the impact to the video surveillance industry of the new 3D Time-of-Flight technology, better autofocus, auto exposure, real-time eye-tracking and motion blur reduction. And new, compact 5G millimeter wave antenna systems are certain to find a home in millions of sensors at the edge of networks.
Only Sony has the scale to bring these innovations to professional use cases.
Sony reported third-quarter financial results Feb. 4. The numbers were weighed down by special items. During the quarter, the company reorganized its EMI music division and realized gains from the sale of a portion of SRE Holdings and NSF Engagement.
The company is emerging as an imagining and sensing solutions powerhouse. During the quarter, sensor sales increased 29% year-over-year to 298 billion yen.
Although production is running at full capacity, Sony still cannot keep up with demand, keeping margins high.
Shares have been retreating since reaching $74 in February, recently trading at $64.93. The stock trades at 14.1x forward earnings and only 1.1x sales.
Sony stock could easily trade around $90 over the next 12 months, a potential gain of 41%. Investors should use any weakness as opportunity.
Best wishes,
Jon D. Markman
