Over the past few years, Sony has made huge strides in the smartphone segment, snatching up vital market share from its competitors. Its Xperia Z lineis highly regarded, but Sony has struggled to make a profit.

Sony has released a revision of consolidated forecast which calls for a 180 billion yen ($1.7 billion) in consolidated operating income loss for the year. The company will also be shifting gears for its Mobile Communications division from a “significant sales growth” strategy to focus on reducing volatility and stabilizing profits. Sony mentions that the new strategy will have an impact on its handset lineup by “reducing the number of models in its mid-range lineup” and “concentrating on its premium lineup.”

Sony isn’t hanging up its hat quite yet, but it’s clear that the company is taking a hard look at its Mobile Communications division to find a way back to profitability, which is a growing trend for companies that build smartphones. We’re hoping that Sony’s rapid iteration and refinement of its flagship devices will not slow down due to the new strategy.

What do you think needs to happen for struggling companies like Sony and HTC and turn things around?