In its three-year corporate strategy plan, Sony has highlighted that it is aiming to attain an operating profit of 500 billion yen ($4.2 billion) by focusing on profitable divisions within the company, such as the image sensor, gaming and entertainment businesses. While its mobile division has seen a turn for the better in recent quarters, a sale may not be out of the question as Sony looks to consolidate its offerings and focus on niche segments.
Sony has stated that it will continue to make investments in the growth segments as it looks to achieve a 10 percent return on equity by the year ending March 31, 2018. Going forward, the focus will be on profitability and not volume, with individual division heads getting more autonomy in decision making. According to CEO Kazuo Hirai:
If our initial mid-term corporate strategy was about reforms, the second mid-term strategy starting from the next business year will be about generating profit and investing for growth.
Hirai also mentioned that a sale of the mobile or the TV division has not yet been ruled out, stating, "I think we have to keep those possibilities in mind." Both divisions were placed in the "volatility management" section, with Sony saying that it will focus on minimizing risk and focusing on profits by carefully selecting launch markets and product areas.
For mobile, that indicates a reduction in the number of Xperia models on offer, as stated by the new head of mobile Hiroki Totoki last year. Sony has also said that it will look be seeking "potential alliances with other companies" in these divisions.
The TV and Mobile Communications businesses operate in markets characterized by high volatility and challenging competitive landscapes. In view of this business environment, Sony will place the highest priority on curtailing risk and securing profits in its operation of these businesses. Since both markets are experiencing intense cost competition and commoditization, Sony will strive to further increase the added value of its products by leveraging its in-house technologies and component devices.
By carefully selecting the territories and product areas it targets, Sony will seek to limit its capital investment and establish a business structure capable of securing stable profits. The Company will also continue to explore potential alliances with other companies in these areas, in response to changes in the business landscape.
Source: Sony
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Sony aims for a profit of $4.2 billion by 2018, will focus on image sensors and games
Sony-HTC, Sony-Nokia, or Sony-sharp tandem. Choose your weapon, Sony.
Focus on image sensors. Get it?? Sony's entire corporate strategy was reorganized for the sake of a bad pun :) .
I don't get it
- Kira
You *focus* to make an *image*. Oh well, it wasn't a GOOD pun. But I couldn't pass it up.
I'm a sucker for terrible puns. Well done sir.
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That pun was terrible and you should feel bad.
...I love it.
Want a partnership for mobile?
There's a Finnish company that has the biggest and best mobile patent portfolio and they're licensing.
Partner with Nokia and leave hardware and software design to them. Sony takes care of production, component provision and distribution. Done. Goodbye competition.
Or they can be idiots and partner with some unknown company. Or worse. Microsoft.
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Two wrongs don't make a right.
Seems like your favored OEMS are going the way of the dinosaurs. Before you know it, you'll be rocking a Samsung with me. Then again, maybe that may be bad luck for Samsung. Everywhere you go, a ship sinks.
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If that holds true, then I'll definitely buy a Samsung. And an iPhone. Just to see those two sh*tholds sink ;)
Otherwise I'd sooner go back to carrier pigeons than to buy a Samsung toy (and Samsung is already sinking without my help ;P)
(btw...I've been with Nokia for 15 years. If it takes 15 years for my patronage to sink a ship, Sony will be fine lol)
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That would be a great partnership, in my opinion.
Hey Sony sell the mobile hardware division already, there is nothing there but a rush to zero. Only the Chinese OEM's will remain standing just like in the pc industry and Apple of course.
I have two Sony cameras, a Sony TV and Sony stereo. My alarm clock is even a Sony Dash, just barely hanging on.
But I don't have a Sony phone, mostly because I live in America.
I know that the US is only one of the markets for business, I think that if Sony would've been selling their phones in the US they could have been doing a lil bit better. The only way to get their phones is through Amazon and even then the phones would be a bit pricey. The other OEMs are taking advantages of the carriers "discounted/contract" pricing to sell their hardware while Sony just recently joined two carriers to offer their phones.
Actually, you can buy many of their phone and tablet products in the U.S. directly from Sony at http://store.sony.com. It's how I've gotten both my Z2 tablet and my Experia Z3.
While poor strategy and cheaper competitors got them to this point, it is nice to see they are thinking right by not focusing on their past and looking at what is working. Not realizing 'core' business changes has caused the other giants to fail completely.
Sony will continue to shrink and be left with mostly just the entertainment division, which is better than selling it to fund the disappearing lines. 5 years for the sensors and 10 years for the gaming. Don't worry. Someone will replace them.
Well they're off to a good start with their newly announced low priced SD card made for high definition sound, that new well priced Walkman, and their amazing looking glasses that are to be a competitor for Google glass. I for one am all for glasses that have a big disc attached to a wire that clips to my clothing. I also LOVE Samsung's useful software that allows me to scroll pages with my eyes, and all carrier made apps. Speaking of things I love, I have some marinated 3 day old liver and onions that's been sitting out on my counter! Mmmm love that stuff. So warm and squishy.