Print 72 comment(s) - last by degobah77.. on Nov 30 at 9:50 AM

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: my analysis
By mcnabney on 11/26/2012 10:23:13 AM , Rating: 1
Am I the only one laughing at you two shouting the praise of plasma TV while talking down to Sony?

Plasma displays have less than 1% of the the market now. Their sales are measured in the tens of thousand while LCD displays(LED or otherwise) are measured in the hundreds of millions.

RE: my analysis
By degobah77 on 11/28/2012 1:45:51 PM , Rating: 2
The very best PQ, color accuracy, combined with black levels and viewing angle is going to be found on a Plasma , not an LCD, unless you want to fork over 7 grand for a Sharp Elite series LED LCD, but even that has problems with color accuracy. In fact, the very best TV right now is still the Pioneer series plasmas that they don't even make anymore.

So who cares if they only take 1% of the market, they're still the best and anyone who knows anything about it will agree.

Most average people buy cheap LCDs, because that's what they are, cheap.

RE: my analysis
By degobah77 on 11/28/2012 1:51:10 PM , Rating: 2
CNET still has the BEST HDTV you can buy right now as a Panasonic Plasma VT50, 2nd best is the $5-7k Sharp Elite LCDs.

Plasmas are the true videophile TV, but they are expensive and require special care, so it's no wonder millions of people still buy the crap LCDs.

RE: my analysis
By Cheesew1z69 on 11/28/2012 4:04:00 PM , Rating: 2
Who cares if it's the best, if you can't BUY it, kind of pointless eh? Yes, it is.

RE: my analysis
By degobah77 on 11/29/2012 10:22:09 AM , Rating: 2
It pisses me off the proven excellent technology, that's steadily been getting better each year, is going off the market because the masses are fucking stupid, that's all.

RE: my analysis
By Keeir on 11/29/2012 6:29:23 PM , Rating: 2
I am confused.

Isn't the whole point of this article (and comment thread) that businesses, Sony and Panasonic, are failing?

Panasonic may make a better Plasma than Samsung, but if Panasonic wants to stay in the TV games, they need to focus on being the best/best value at LCD TVs. That's where the Sales are, thats where the profits can be made.

In fact, the very best TV right now is still the Pioneer series plasmas that they don't even make anymore.

What good does that do any business then?

RE: my analysis
By degobah77 on 11/30/2012 9:50:38 AM , Rating: 1
Agreed, and because of that, I will probably have to make my own fucking plasma TV since we all have to rely on the purchasing decisions of millions of idiots. Sucks that businesses have to focus on inferior tech to survive just because Walmart can sell a POS 50" LCD for $478.

"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins

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