Sony Shakes Up, Breaks Up Struggling TV Unit
November 1, 2011 4:15 PM
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
"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer
Sony Detects New Web Attack, 93,000 Accounts Are Locked Down
October 12, 2011, 10:33 AM
LulzSec Hacked? Nope. Sony Hacked Again? Yes, Twice.
June 6, 2011, 10:00 PM
Sony Loses Yet More Customer Records, 3 More Sites Hacked
May 25, 2011, 8:16 AM
Bringing Great Shame to Their Family: Sony Hacked Yet Again
May 24, 2011, 3:43 PM
Sony Appears to Have Lost Yet Another User Database
May 23, 2011, 9:09 AM
ASUS RT-AC5300 – Ultimate Game & 4K Streaming
April 18, 2017, 7:45 AM
HP Envy 17t Touch – All-Day Battery for All-Day Portability
April 13, 2017, 6:29 AM
ASUS Chromebook Flip C302CA – Your Versatile Flexible Companion
April 11, 2017, 6:14 AM
What is the best Processor for gaming? AMD or Intel
April 2, 2017, 6:30 AM
Arris Motorola SB 6141 – High Range of Compatibility and Internet Speeds
March 28, 2017, 7:55 AM
Comparison – Samsung Galaxy TabPro S Vs Microsoft Surface Pro 4
March 21, 2017, 7:40 AM
Most Popular Articles
Surface Pro 5 Rumors - New Release Date and Price
April 22, 2017, 6:45 AM
SAPPHIRE PULSE Radeon RX 580 8GD5 – Great Value for the Money
April 20, 2017, 7:47 AM
Dell Inspiron 17 7000 – A Premium Laptop featuring 7th Gen Intel Core i7 in a 2-in-1 Frame.
April 19, 2017, 7:45 AM
Tesla will announce electric lorry in September
April 19, 2017, 6:20 AM
Meet the Smartphone with four cameras - Alcatel Flashphone
April 5, 2017, 11:20 AM
Latest Blog Posts
Google Co-Founder, Sergey Brin has an Airship
Apr 26, 2017, 6:43 AM
Samsung Galaxy S8 and S8 Plus – Lots of Glass that Breaks Easily
Apr 25, 2017, 7:20 AM
Samsung Galaxy S8 – Warning for Pet Owners
Apr 24, 2017, 5:59 AM
Sound Bars and the Costs?
Apr 23, 2017, 6:30 AM
Link your Brain to Your Computer – In Four Years…Maybe
Apr 22, 2017, 7:03 AM
Google Home can now identify users by their voice.
Apr 21, 2017, 7:15 AM
Amazon Lex – Now Available for Developers.
Apr 20, 2017, 6:58 AM
You can now use Instagram offline on your Android Smartphone
Apr 19, 2017, 8:00 AM
Now you can livestream to YouTube from your mobile device.
Apr 18, 2017, 8:05 AM
Google Home – Is It a Spy Device?
Apr 17, 2017, 7:30 AM
Apple added to self –driving test permit list
Apr 15, 2017, 6:21 AM
Project Scorpio – Coming on June 11
Apr 14, 2017, 6:20 AM
Looks Like Samsung Has Been Forgiven.
Apr 13, 2017, 6:50 AM
United Airlines - Blasted on China’s Social Network and the Stock Market
Apr 12, 2017, 6:50 AM
Amazon's Third-Party Sellers Hacked
Apr 11, 2017, 6:25 AM
Microsoft Surface Pro5 Details Revealed
Apr 9, 2017, 6:41 AM
Own An Android Phone? Then you could be hacked over Wi-FI
Apr 7, 2017, 6:47 AM
Apple confirms iOS 10.3 bug and its effect on iCloud Services
Apr 6, 2017, 6:30 AM
Apple Rolls Out New Version of Apple Music
Apr 5, 2017, 10:35 AM
Apple in the News
Apr 4, 2017, 9:03 AM
Apple iPhones Will Soon Feature Graphics Chips Designed BY Apple
Apr 3, 2017, 6:23 AM
More Blog Posts
Copyright 2017 DailyTech LLC. -
Terms, Conditions & Privacy Information