Profits on Sony’s LCD, LED and Smart TVs have been dwindling over the past few years with the lack of demand in developing countries and stiff competition from companies, including Samsung and LG, said to be a major factor.
Full details of the split are expected to be announced later today during the company’s quarterly financial call, but a statement released yesterday by Sony spokesperson Ayano Iguchi reveals the three divisions will be: LCD TVs, next-generation TVs, and outsourcing.
It’s unclear how this will leave Sony’s current joint venture with South Korea’s Samsung, who has manufactured LCD panels for the company since 2004. Japanese broadsheet The Mainichi Daily News, via ZdnetAsia, reports that Sony may sell its 50 percent stake back to Samsung to help recuperate losses. According to the newspaper’s sources, a deal between the two should be sealed by the end of the year.
In today’s quarterly earnings call, Sony is expected to announce substantial losses in the TV sector. In the last financial statement, released in March 2011, Sony posted an operating loss in its TV business in excess of $6 billion since 2004. In New York this week, Sony shares fell 5.23 percent to $21.21.