Sony might spinoff its camera sensor division

Sony doesn’t sell a lot of smartphones these days, but it’s still a big deal in the phone industry. That’s because Sony camera sensors are everywhere—from iPhones to Pixels to Xiaomi’s flagships. But that might be changing soon.

According to a new report, Sony is considering spinning off its camera sensor business into a separate company. It’s not official yet, but the idea is already being floated as profits start to shrink. At one point, the division made up 25% of Sony’s profit. That number has reportedly fallen to around 10%.

Sony’s sensors have long powered some of the best phone cameras on the market. Apple, Google, and Xiaomi have all leaned on Sony’s tech to great success. Even the Xiaomi 13 Pro uses Sony’s large 1-inch sensor, which plays a major role in that phone’s image quality. So, if the camera division gets spun off, the way these companies collaborate with Sony could change in the future.

That said, Sony might still retain a minority stake in the new company. So even if it becomes a standalone entity, don’t expect dramatic changes—at least not right away. These sensors are too deeply integrated into the supply chain.

There’s another twist: Trump’s 145% tariffs on Chinese tech imports have rattled the entire electronics industry. Some sources suggest the volatility is part of the reason Sony is pausing before making a final decision. With so much uncertainty, the company might wait to see how trade policy shakes out.

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