Sony products have once been impressively popular among all electronics makers. Sony TV ruled the roost in most of houses until South Korean Samsung and other Asian rivals did not come into being. The stiff competition in the core business of Sony upset the top and bottom line of the Japanese electronics dragon so much so that has been losing money for last four years and for last eight years particularly in the core business of TV, according to Bloomberg Businessweek.
For its fiscal year ended March 2012, Sony has recorded a loss of 457 billion yen ($5.7 billion). This huge loss forced the company to reportedly cut six per cent or 10,000 of its international workforce. As of March 2011, Sony managed 168,000 employees all over the world.
It is not the first time when the company is planning to eliminate jobs from the company. In 2005, it had to cut 10,000 to 30,000 jobs because of closure of 11 factories while 2008-global financial crisis made the company to shed another 16,000 jobs engaged in rolling out Sony products in the world.
Stock value of Sony has also been depreciating very significantly. It went down to 1000 yen on Monday this week on the Tokyo Stock Exchange.
Top and bottom lines of the company are being affected adversely by the strong value of yen and devastating floods in Thailand, which is the leading electronics manufacturing center.
Isn't it interesting that local currency depreciation is beneficial for the organizations relying on overseas business while it is damaging to the interest of importers.
Sony has other problems too than weighty yen leaving price of its products uncompetitive in the international markets. It would be an exaggeration that people don't want to buy Sony. However, it is also a fact that consumers are giving up Walkman's sensation on new and modern devices of Apple and Samsung. Sony products include digital cameras, personal computers, PlayStation game consoles, smartphones, and movies.
Advisably, Sony deals can attract the customers as they bring in relief from high prices. Bulk sale can atone for price cuts. After all, a Sony discount does not likely lose its charm.
What has not been achieved by Sony in last four years may likely take place owing to tablets and smartphones. The company is venturing out in modern electronics market and expects 30 billion yen ($375 million) profit for its next fiscal year on growing demands of smartphones and tablets especially in India and other emerging economies.
Samsung and Apple hold half of smartphone market share. China has emerged as the revenue spinner for Apple while Samsung racks up scores in North America. In tablet market, Cupertino, California-based Apple embraces more than half of share.
In such a market scenario, will Sony be able to carve out its distinct position. The company is pinning hope on new markets as it has mentioned to promote Sony offers. Penetration into tablet and smartphone markets may help the once global electronics giant to regain its grandeur.
Author Resource:
Tariq Saeedi is a couponing industry’s analyst holding journalism and marketing degrees and contributing articles to digital and print media. Visit Dealaboo.com for Sony products | Sony deals | Sony Discounts .
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