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  (Source: bestasiatravel.asia)
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.

Source: Reuters



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RE: Downhill
By Uncle on 11/25/2012 3:58:06 AM , Rating: -1
My point was that the Japanese should have stayed with one of their own."He served as president of CBS from 1988 to 1995, where he was responsible for all the broadcast activities of its entertainment, news, sports, radio and television stations." Like I said he had no experience in running sony, he had experience in managing entertainment.


RE: Downhill
By Schadenfroh on 11/26/2012 10:59:13 AM , Rating: 1
Sony is one of the largest publishers / content providers of TV shows, movies and music in the world. Ever hear of Columbia, Tristar, MGM and BMG?

Their media division (Sony Pictures / Sony Music) likely does better than their consumer electronics and just happens to be Stringer's bread & butter.


RE: Downhill
By Uncle on 11/26/2012 12:58:08 PM , Rating: 2
The section that Stringer is an expert at is only 25% of sonys total business. zdnet.com/sony-selling-1-9b-of-convertible-bonds-to -expand-7000007435/


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