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Sony splits TV business into three following major losses

by Steven Williamson on 1 November 2011, 09:25

Tags: Sony Computers Entertainment Europe (NYSE:SNE)

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As a result of major losses, Sony will carry out a reshuffle of its television business by splitting it into three divisions.

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.

Seven years of losses for Sony's BRAVIA TVs


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.


HEXUS Forums :: 6 Comments

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People want TVs with a good picture quality. It's hard to distinguish Sony with the likes of LG and Samsung who have upped thier game in recent years. The key differentiator is that Sony doesn't like it when you want to play your own films via a thumb drive. This may of changed, but when I bought my TV 2 years ago, it was Samsung which won me over with their DLNA support.

Sony needs to adopt standards instead of trying to strangle them.
billybear
People want TVs with a good picture quality. It's hard to distinguish Sony with the likes of LG and Samsung who have upped thier game in recent years. The key differentiator is that Sony doesn't like it when you want to play your own films via a thumb drive. This may of changed, but when I bought my TV 2 years ago, it was Samsung which won me over with their DLNA support.
Sony needs to adopt standards instead of trying to strangle them.
I'm going to disagree on both counts - in last year's What HiFi awards Sony did very well - matching Samsung for the number of entries and securing the overall winner (with the 40EX503). Okay, this year, Sony didn't manage a single entry, but then again Panasonic seem to have had it “sewn up”.

We chose a 40EX503 after comparing the picture quality - the LG's had off kilter colours, and the Samsung's seem to lack a bit of definition. That said, I've got an LG monitor (which was a buying mistake) and it seems to be okay on the colours, but it's incredible how quickly it loses sharpness as viewing angle increases - the 5 year old Viewsonic that it replaced was markedly better.

As to DLNA - the ‘503 ticks that box fine - no real problems streaming photos, music and some videos to the TV from either flash drive or NAS box. The “some videos” qualification is because the tv seems to lack support for MP4’s etc - which is strange because the home theatre kit we got in the package does these very well.

The units later than ours apparently can also be controlled via a smartphone/tablet app - again, the home theatre kit can do this, and I had a fine old time messing around with the settings from my Android tablet. :geek:

I'm a bit surprised that Sony are suffering poor sales - they certainly seemed to have a good “presence” - e.g. most of the tech departments in Marks & Spencers we'd been into have pushed Sony and Samsung gear, and usually it's the Sony at the front display.
Their TV's are expensie compared to Samsung or LG .. seriously .. what did they expect?

And, why are they buying LCD screens from Samsung ? Can't they make their own or get a dedicated manufacturer than buying from a rival ?
OilSheikh
Their TV's are expensie compared to Samsung or LG .. seriously .. what did they expect?
You're forgetting Sony logic, why cut the price and compete when you can change strategies and impress investors with your business acumen?
Panasonic are also losing vast sums of money on their TV Business - they will be shutting/selling quite a few plants and outsourcing most of their flat panels …

Seems that the Japanese firms just can't compete on price with the Korean competitors who have pretty much caught up with them in terms of quality.