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TOYKO -- Sony Corp. will cut the number of suppliers it uses to 1,200 from 2,500 within the next year as the company tries to reverse its first net loss in 14 years.

The company, one of the world's largest consumer electronics OEMs, plans to cut purchasing costs by about 20% -- roughly $5.3 billion -- in fiscal 2010, a company spokeswoman said today.

The firm's suppliers were told of the impending change this week, although it is unclear whether they have been informed of their future status with the company.

The firm also said it would centralize its procurement operations, with the goal of getting better pricing and other terms. Traditionally, Sony has left it to its operating units to develop approved supplier lists and contract terms.

STAMFORD, CT -- First-quarter cellphone sales fell 8.6% to 269.1 million units worldwide, with only two of the top five providers showing growth.

Smartphone sales were the bright spot, growing 12.7% to 36.4 million units, Gartner said.

Of the top five providers, only No. 2 Samsung and No. 3 LG grew.

Market leader Nokia shipped 97.4 million units, down from 115.2 million last year. Samsung's share jumped 7.4 points to 19.1% on the strength of 51.4 million units sold, up from vs. 42.4 million units last year. LG sold 26.5 million units, up from 23.6 million units.

Motorola saw the biggest percentage drop, selling just 16.6 million units a year after moving 29.9 million units. Sony Ericsson sold 14.5 million units, down from 22.1 million units.

In smartphones, Nokia moved 15 million units (41.2% share), up 3%. No. 2 Research In Motion sold 7.2 million units, up 67%. Apple sold 129% more units -- 3.9 million, good for a 5.3% share. HTC sold 2 million units, up 54% and Fujitsu gained 8% to 1.4 million units.