Sony (TYO:6758) will release a new flagship Xperia smartphone on Thursday, equipped with artificial intelligence camera capabilities, as the company seeks to recover from power issues that affected its previous model, Nikkei Asia reported Tuesday.

The predecessor, Xperia 1 VII, suffered a manufacturing defect causing sudden power-offs or restarts, forcing Sony to halt sales for two months and issue a recall, the news agency said.

Sony has long struggled in the smartphone market against dominant players like Apple and Samsung, with Apple holding roughly half of Japan's market share in 2025, the publication said.

According to the MM Research Institute, Sony ranked seventh in Japan, trailing Google, Samsung Electronics (KRX:005930), Sharp (TYO:6753), FCNT, and Oppo, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)