Sony Shakes Up, Breaks Up Struggling TV Unit
November 1, 2011 4:15 PM
comment(s) - last by
After eight years of quarterly losses, the company is a bit worried
The LCD era has not been kind to Sony Corp.'s (
) television unit. Sony has a hand both in manufacturing LCD displays -- via a joint venture with Samsung Electronics Comp., Ltd. (
) -- and, like Samsung, in selling assembled LCD TVs. Unfortunately, Sony's LCD ambitions have failed to produce a single annual profit eight years into the experiment.
Faced with its eighth year in a row of losses, Sony is shaking up its TV division. According to
by the business daily
, Sony is negotiating with Samsung on a buyout of its 50 percent manufacturing stake in the LCD joint.
In terms of official changes, Sony has committed to immediately splitting its TV unit into three new units. One unit will be tasked with sales of LCD TVs, another will head outsourcing manufacturing to cheaper foreign facilities, and a third unit will be charged with developing future TVs.
Sony spokeswoman Ayano Iguchi comments, "By dividing into three divisions, we will make clearer the mission and responsibilities of these."
Sony has suffered from a variety of problems this year. Some -- like a strong yen, which cuts into profits, and faltering consumer confidence due to the global recession -- have affected the company's peers in Japan and abroad. Other problems are more unique to Sony, such as the series of massive privacy breaches [
] that occurred earlier this year when Sony lost approximately 100 million gamers' personal information, including credit cards for some.
The company's TV unit has also had some expensive recent misfires. After being the first Japanese manufacturer to
go commercial with an OLED TV design
, Sony has
pulled the plug on the project
for now, after disappointing sales. Likewise,
Sony's Internet TV project
with Google Inc. (
[Source: Stuart Ramson]
Given these diverse factors conspiring to cut into Sony's profits, analysts are predicting the company to fall short of its predicted ¥200B ($2.555B USD).
In the past Sony could afford to pour money into its struggling LCD TV venture. But with its budget tightening, the company its pondering the first in what may be a series of major cuts and changes.
Nikkei via Reuters
This article is over a month old, voting and posting comments is disabled
doesn't surprise me
11/1/2011 4:39:55 PM
Sony always seemed to put out decent products, but at prices well beyond those of the competition, and I didn't really see much benefit to getting a Sony TV versus another brand.
My last purchase was a 1080p 52" Samsung about 3 years ago, and it has been great. The cost was several hundred less than the similar Sony model at the time.
"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)
Sony Detects New Web Attack, 93,000 Accounts Are Locked Down
October 12, 2011, 10:33 AM
GM's CEO Praises Obama, Calls on Gov't to Pump Up Gas, Income Taxes
June 7, 2011, 10:30 AM
NASA Bids Farewell to Mars Rover "Spirit"
May 25, 2011, 12:50 PM
Wikileak's Assange on U.S. Informants in Afghanistan: "They Deserve to Die"
May 24, 2011, 9:30 PM
Sony Appears to Have Lost Yet Another User Database
May 23, 2011, 9:09 AM
How to Recover Most Apps After Your NVIDIA Driver Crashes in Windows 10
March 30, 2015, 12:54 PM
Tinkerer Gets Old School Mac Plus Running on the Modern Web
March 24, 2015, 6:41 PM
Facebook-Backed Oculus Rift's Release Date Slips to 2016; Valve and HTC Salivate
March 16, 2015, 5:58 PM
Hackers Steal Roughly $1 Billion From Banks Using Malware RAT
February 17, 2015, 9:30 AM
NVIDIA Kills Mobile GPU Overclocking, Robs Customers Who Paid For It
February 16, 2015, 8:59 AM
Apple Offers Refurbished 5K Retina iMacs for $2,119 Online
January 16, 2015, 12:37 PM
Most Popular Articles
Raytheon $1.9 Billion Purchase of Websense Raises Tough Questions
April 20, 2015, 1:57 PM
HBO to VPN HBO Now Users: Prove You Live in U.S. or We Will Terminate You
April 21, 2015, 12:17 PM
AMD CEO: Windows 10 Will Launch at "The End of July"
April 20, 2015, 7:24 PM
Quick Note: Lady Macbath -- One Japanese Woman's Apple Themed Revenge
April 23, 2015, 11:47 AM
After Record-Setting Week, Samsung Predicts 70 Million GS6/GS6 Edge Sales
April 17, 2015, 8:39 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information