Sony has unveiled a new version of its flagship Xperia handset to show its still in the smartphone race; even as it scales down its mobile phone operations.

The release of the Z4 comes amid a painful restructuring at the Japanese consumer electronics giant which has thrown the future of its smartphone division into doubt, with top executives refuses to rule out an exit.

As the firm focuses on cutting costs rather than growing its mobile market, the division still needs investment in new products and marketing to maintain Sony’s brand and hold off a more rapid deterioration.