AVS Forum banner
Status
Not open for further replies.
1 - 2 of 2 Posts

·
Registered
Joined
·
660 Posts
Discussion Starter · #1 ·
Business Week Aug 15, 2005 (snippets [slightly edited] from)


Sony execs on July 28th lowered their earning forecast downward from $1.4 billion to $270 million for the fiscal period ending March '06.


The biggest problem appears to be it's TV operations which make up 33% of overall sales (up from 15% a decade ago) For the fiscal year ending March '06 Sony TV unit is now expected to lose $1.3 billion dragging down the profit forecast.


They expect to sell 2.5 million LCD TV's (up from 1 million last year) and 1.4 million RPTV's (up from 650k last year). But after putting many of their eggs in the LCD basket - they are in a peculiar situation because of the collapse of pricing says Dick Komiyama, president of Sony Electronics. For the April-June quarter alone prices for LCD TV's in the US dropped by nearly 50%.


The "projected" picture for the following year (fiscal year ending March '07) shows Sony's TV operations losing another $450 million.


Sony's share of the global TV market shrank from more than 10% in the late 90's to 6.5% last year. Sony manager's were late to see the trend moving to flat panel TV's and were focused on building up the movie business and were wary of investing in new factories.
 
1 - 2 of 2 Posts
Status
Not open for further replies.
Top