Fitch: Sony More Likely to Sink Than Panasonic
November 24, 2012 8:40 PM
comment(s) - last by
Panasonic will likely survive because it focuses on more than just consumer electronics
A credit rating agency said that Panasonic would likely survive longer than Sony after downgrading both electronics companies.
Credit rating agency Fitch recently lowered Panasonic's rating down two notches to BB, but cut Sony down three notches to BB minus. Other credit rating agencies have put them at the same level.
The reason for Fitch's credit ratings? It claims Panasonic has a "relatively stable consumer appliance business," such as refrigerators and washing machines, aside from just consumer electronics. Sony, on the other hand, is mainly depending on the extremely competitive consumer electronics market.
Right now, tech giants like Apple and Samsung have a strong hold on the electronics market, such as smartphones and tablets.
Sony's troubles largely stem from its failing TV business. It has seen eight straight years of quarterly losses, and last December, Sony decided to shake up its TV division by
negotiating a buyout
of its 50 percent manufacturing stake with Samsung in the LCD joint venture. It also
split its TV division into three units
consisting of sales of LCD TVs, outsourcing manufacturing to cheaper foreign facilities and developing future TVs.
To make matters worse, Sony reported a
record annual loss of
$5.7 billion USD
in May 2012.
However, new Sony CEO Kazuo Hirai has been working to turn the company around since he took over in April 2012. In fact, he offered an entirely
new plan for restructuring the company
. A key idea behind the restructuring was to strengthen core businesses, including digital imaging, games and mobile. He also opted to take over the failing TV business, expand business in emerging markets, create new businesses and realign the business portfolio.
Just last month, Sony
closed a factory in Japan and cut 2,000 jobs
at its Tokyo headquarters.
While Hirai is trying to make Sony profitable again, Fitch said "most of their electronic business are loss making" and "appear to be overstretched."
Fitch said Panasonic, on the other hand, is focusing on areas other than consumer electronics like home appliances, lithium batteries, solar panels and automotive parts.
This article is over a month old, voting and posting comments is disabled
RE: my analysis
11/25/2012 3:11:49 AM
Sony has Blu-Ray. They really bet the farm on getting there, but they got it. There's really nothing else compelling that they have to offer--including the playstation.
RE: my analysis
11/25/2012 8:02:06 PM
That is relative.
I'm finding PS3 very nice, even though I am PC gamer as well. We have one at home and it gets utilised well.
I also happen to like design of Sony Android phones, quite distinctive. I'm finding them nicer looking than Samsung/HTC..., and if I decide to go Android for my next phone, I will definitely consider Sony models.
Sony does some very nice cameras, some unique as well. NEX line of mirror-less APS cameras is well reviewed. RX100 is first pocket camera with large (for pocket camera standards) sensor and full manual control. RX1 is full sensor camera in compact body, also not done before Sony.
Sony VAIO S series are good portable 13" laptops let down by poor screens on all but top of the line models. Still, they pack decent battery, backlit keyboard, extended slate battery, docking station port, built in optical drive and dedicated graphics good for some casual gaming (nVidia 640M)in really highly portable and well designed body.
Sony tablets are just another Androids, but I still like design direction they took.
Sony TV, well. My LG LED backlit 200Hz 42" TV was expensive and presumably top of the line unit. It works fine 3 years down the path, but out of the box we have noticed that front plastic does not fit well, there was about 1cm gap between plastic and actual screen. We got it replaced, though 2nd one still had gap (a bit smaller). We were told they are all like that, which is a bit disappointing... so for my next TV, I will be looking Samsung and Sony.
So you see, there are quite a few compelling Sony products for me... and that is just among those I was bothered to check.
"Mac OS X is like living in a farmhouse in the country with no locks, and Windows is living in a house with bars on the windows in the bad part of town." -- Charlie Miller
Sony Closes Factory in Japan, Cuts 2,000 Jobs at Tokyo HQ
October 19, 2012, 7:02 PM
Sony Reports Record $5.7 Billion USD Annual Loss
May 12, 2012, 7:33 PM
Sony CEO Lays Out New Plans to Make Company Profitable
April 12, 2012, 11:08 AM
Sony Sells LCD Panel Joint Venture Shares to Samsung
December 26, 2011, 11:31 AM
Sony Shakes Up, Breaks Up Struggling TV Unit
November 1, 2011, 4:15 PM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 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 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information