Sony Corp. will focus its supply chain on 250 strategic partners as it seeks to lower costs and accelerate production.
The strategic partnership isn't permanent and is designed to make its products more competitive, Sony said in a statement. The company is choosing partners for key products, including smartphones and digital cameras, from about 1,000 current suppliers, spokesman Koji Kurata said Thursday.
Chief Executive Officer Kazuo Hirai, who last month forecast a ¥110 billion loss, is trying to cut costs to spur a revival at a company hit by declining demand for televisions, cameras and personal computers. Sony is struggling to find new hit products to capture a consumer shift to mobile devices from Apple Inc. and Samsung Electronics Co.
"It will be helpful for cutting costs and achieving shorter research and development periods, which are crucial for smartphones," said Keita Wakabayashi, an analyst at Mito Securities Co.
The company didn't identify which companies are being classified as strategic partners. Sony's existing suppliers include Hon Hai Precision Industry Co., Samsung, Wistron Corp., Pegatron Corp. and LG Display Co.
In November, Sony announced plans to cut $250 million in costs at its entertainment units over two years as part of Hirai's plan to boost profit and keep full ownership of the movie, TV and music businesses.