Once arrogant Sony, perhaps really want to tell the world sorry.
Sony today released its third-quarter results in fiscal year 2014, although Sony achieved 89 billion yen in the quarter, but remained in the red for the year 2014, down from the previously expected 230 billion yen to 170 billion yen (about 9 billion yuan).
In fact, for Sony, the loss has become normalized. Unable to keep up with the technology, LCD TVs lag behind rivals such as Samsung and LG, and the smartphone race lags behind Apple, Samsung and Chinese handset makers, and Sony is struggling to extricate itself from losses. Sony lost again in 2014, its 6th annual loss in the last 7 years. In the seven years from 2008 to 2014, Sony only achieved a profit of 43 billion yen in 2012 (about 2.29 billion yuan), the other 6 years was a loss, total losses amounted to 1.15 trillion yen.
Meanwhile, Sony has announced a bombshell: it will lay off 2100 people in the mobile business by the end of fiscal year 2015.
Mobile business is a refund is sold
In fact, October 31 last year, Sony announced the mobile phone business reform measures. Sony Mobile will slash the size of its mobile presence in China, with a significant portion of the planned layoffs involving 1000 employees in the world coming from China (700-800 people).
Sony has given its own strategy, and Sony CFO Kitan Matsuura says it will no longer develop new smartphones for the Chinese market and will streamline the Xperia product line. While Sony denies that the handset business will withdraw from the Chinese market, it seems unlikely that this trend can be reversed.
The results show that the black hole-type losses in Sony's mobile phone business and the difficulty of rising profits from existing business operations are the main reasons. In this case, Sony is not difficult to understand the operation of the mobile phone business.
According to Sony's estimate, the mobile division will lose 1.82 billion dollars. Sony has repeatedly cut its forecasts for annual handset sales, mainly because of the sharp competition in the Asia-Pacific mobile phone market, especially in China. The handset business has been hard to find, even before the news that Sony will sell its handsets.
So where does Sony's mobile business go? For now, the industry's rumours of a full sale and a direct exit should not be possible, because Sony's mobile phone business is not without drugs, and selling also means a massive cost of restructuring and revenue.
In addition, Japan's system compared to the European and American enterprises are relatively closed, so such as Motorola's brand industry can be frequent "changed" but rarely see which Japanese brand can quickly "circulation", the original Ericsson eventually turned into a Sony Ericsson. Is it so hard to integrate into others?
Does Sony fall to get up?
Once upon a time, Sony was almost synonymous with technology in Japan and the world, the embodiment of innovation and quality. Until the internet era, Sony was a giant of technology. Why, in the internet age, become a can not afford to help fools?
Some analysts said: Sony's product line is too long, from headphones, medical printers and 3D film production equipment, to home video recorders, televisions and cameras, mobile phones and other personal electronic products, there are more than 2000 products. These products are irrelevant and difficult to form a complementary advantage. Worse, Sony lacks a truly competitive core product among many products.
Perhaps the focus is not enough for many years, but in fact, Sony has long been mobile, digital video and games as its three pillars of business. But the mobile business has gone into the mire, in the smartphone market, with such a high demand for rhythm, the cautious nature of Japanese companies has almost announced the failure of the business.
Digital imaging Business Today, in addition to the television business because the accumulation of upstream industry chain can remain at the top of the pyramid, professional camera equipment, the technical advantages, Sony's brand has been difficult to find users at the sales terminal.
Of course, the powerful Sony game empire for Sony won countless young fans, but the more the Microsoft Xbos, the more the PlayStation of the hematopoietic machine can go far? At least under the pressure of competition, the reduction of profit margins is a fait accompli.
Indeed, Sony needs to slim down, perhaps one or two of years of beautiful data to regain lost confidence. But when you are thin, what do you use to boost your profits? Over the years, too many facts have proved a pluralistic fat pig, no matter how thin is not a responsive wolf dog. Sony fell, you said you can climb up?