Sony Mobile Communications is likely to reduce the number of new smartphones launched in 2016, and consequently the vendor may also dismiss its R&D unit in Taiwan, according to industry sources.

Sony Mobile launched five models in 2015 and is likely to release only two models in 2016, indicated the sources. Previously, Sony Mobile launched 5-8 models a year.

The vendor is also expected to discontinue smartphone production at Foxconn Electronics, and placed the bulk of its orders with Arima Communications and Compal Electronics, said the sources.

The three Taiwan-based handset ODMs all declined to comment on market reports.