Sunday, October 26, 2014
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Panasonic to Offload Sanyo's North America TV Business
Google's Pichai to Become Head of Product at Google: report
Internet Explorer 11 Toolkit Allows Enterprise Admins "Spy" On Their Employees
FCC Says Airwave Auction To Delay Until 2016
HP Broadens Moonshot Portfolio With Intel-powered Models
Microsoft To Keep Nokia Brand For Low-end Smartphones
LG Introduces Its First Octa-Core Application Processor
Cloud and Surface 3 Drive Microsoft's Revenue
Active Discussions
Copied dvd's say blank in computer only
How to generate lots of different CDs quickly
Yamaha CRW-F1UX
help questions structure DVDR
Made video, won't play back easily
Questions durability monitor LCD
Questions fungus CD/DVD Media, Some expert engineer in optical media can help me?
CD, DVD and Blu-ray burning for Android in development
 Home > News > PC Parts > Sony to...
Last 7 Days News : SU MO TU WE TH FR SA All News

Thursday, February 06, 2014
Sony to Sell Its PC Business, Focus On Smartphones And Tablets


Sony today announced new measures to turn around its unprofitable electronics operations, quitting the PC business and splitting its TV division into a separate unit as it warned it expects losses this year.

Sony has been implementing a reform strategy across its electronics business, since April 2012. In the imaging, game and mobile businesses that Sony identified as the three core businesses that would drive the growth of its electronics business, Sony has made progress in executing this strategy.

Sony now also taking further steps to address reform of the PC and TV businesses, while at the same time moving forward with further optimization and streamlining of its manufacturing, sales and headquarters/indirect functions, and concentrating resources in growth businesses.

Sony and Japan Industrial Partners Inc. (JIP) today concluded a memorandum of understanding confirming the parties' intent for Sony to sell to JIP Sony's PC business currently operated under the VAIO brand.

The company has determined that concentrating its mobile product lineup on smartphones and tablets and transferring its PC business to a new company established by JIP is the optimal solution. Financial terms of the sale weren't disclosed, but Sony will initially hold a 5 percent stake in the new company.

Sony and JIP will negotiate detailed terms and conditions of the business transfer, targeting the conclusion of a definitive agreement by the end of March 2014. Following reevaluation of the product lineup, the new company is expected initially to concentrate on sales of consumer and corporate PCs in the Japanese market and seek to optimize its sales channels and scale of operations, while evaluating possible further geographic expansion.

As a part of the business transfer to JIP, Sony will cease planning, design and development of PC products. Manufacturing and sales will also be discontinued after the Spring 2014 lineup to be launched globally. Sony says that even after it withdraws from the PC market, its customers will continue to receive customer services. Approximately 250 to 300 Sony and Sony EMCS employees involved in PC operations, including planning, design, development, manufacturing and sales, are expected to be hired by the new company established by JIP. Sony will also explore opportunities for other employees to be transferred to other businesses within the Sony Group. For employees of Sony and Sony EMCS that are not hired by the new company or transferred within the Sony Group, Sony plans to also offer an early retirement support program to assist their reemployment outside of the Sony Group.

Sony has been engaged in various cost reduction initiatives for the TV business including enhancing LCD panel-related cost efficiency and rationalizing R&D expenses, while also strengthening product competitiveness and operational efficiency in order to improve marginal profit ratio. Due to these measures, losses from the TV business, which amounted to 147.5 billion yen in the fiscal year ended March 31, 2012 (FY11), were reduced to 69.6 billion yen in FY12, and are now anticipated to be reduced further, to approximately 25 billion yen in FY13.

While Sony now anticipates that its target of returning the TV business to profitability will not be achieved within FY13 largely due to unexpected factors such as the slowdown in emerging markets and declining currency rates, the reforms executed within the TV business over the past two years are putting the business on a path to turnaround. In particular, Sony has enhanced product competitiveness and accelerated its shift to high-end models, especially in the area of 4K, where Sony has secured more than 75% market share in Japan (as of the end of December 2013, based on Sony research). Sony has also taken the number one market share in the US for 4K models (during calendar year 2013, based on revenue). Sony has decided to execute additional reform measures with the aim of establishing a structure capable of delivering stable profit beginning in the fiscal year ending March 31, 2015.

First, Sony will shift its product mix and focus on increasing the proportion of sales from high-end models in FY14. The company plans to reinforce its position in the 4K market by strengthening its product lineup while also bolstering its 2K models with wide color range and image-enhancing technologies. In emerging markets, Sony will aim to harness market expansion by developing and launching models tailored to specific local needs.

Second, Sony will accelerate its cost reduction and operational improvement measures, focusing attention across all functions relevant to the TV business, including manufacturing, sales, and headquarters/indirect functions. In addition, Sony has decided to split out the TV business and operate it as a wholly-owned subsidiary.

In terms of electronics sales companies, Sony plans to identify focused product categories for each specific country and region, rationalize support functions, and implement outsourcing and other efficiency measures with the objective of achieving total cost reductions of approximately 20% by the fiscal year ending March 31, 2016.

With respect to manufacturing sites, Sony will proceed with the further optimization of manufacturing and other operations.

Sony will also streamline Sony headquarters and support functions and expects to achieve cost reductions of approximately 30% by FY15 within these operations.

The targeted timeframe for this transition is July 2014. The company is aiming to further enhance its TV business' profit structure and return the business to profitability during FY14.

Due to the implementation of the above measures, Sony is anticipating headcount reduction of approximately 5,000 (1,500 in Japan, 3,500 overseas) by the end of FY14.




Previous
Next
Mozilla Previews New Firefox OS App Launcher For Android        All News        Cisco and Samsung Enter Patent Cross-License Agreement
IBM Brings Watson to Africa     PC Parts News      ZOTAC ZBOX ID45 Mini PC Released

Get RSS feed Easy Print E-Mail this Message

Related News
Sony To Release Android Lollipop To Its Entire Xperia Xperia Z Series
New Sony Headphones, Portable Headphone DAC/Amplifier and Headphone Cables Support Hi-Resolution Audio
Sony Xperia Z3 Coming To The US
PlayStation TV Coming October 14th
Sony Develops SmartEyeglass, Launches SDK
Sony To Offer Unity For PlayStation To PlayStation Licensed Developers
Sony Slashes Guidance Due To Poor Smartphone Sales
Sony Smart EyeGlass Prototype Appears At IFA
New Sony Camera Shoots In The Dark
Sony Unveils New Xperia Z3, Z3 Compact And More at IFA
Sony PSN Back Online
Sony Offers New Smart Tennis Sensor

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2014 - All rights reserved -
Privacy policy - Contact Us .