Sony Will Focus On Mobile Technology

This week Sony CEO Kazuo Hirai confirmed that the electronics firm will shift its

emphasis to mobile technology such as smartphones, games & cameras.

The statement came after Hirai announced that Sony will cut nearly 10,000 jobs or six% of their global employees & soon after doubling Sonys annual loss forecast.

Hirai took over the position as CEO from Howard Stringer and has only been in the position twelve days prior to making the announcement. Sony have struggled to compete against Apple and Samsung in the mobile industry and also have suffered in a swift moving Television market.

Amid pressure from investors demanding change the 52 year old CEO informed reporters that Sony will change.

Difficult TV Market

Sonys major concerns have been in the TV market which continues to be hammered by poor demand, low prices & a robust Yen raising the costs of exports. Sony are not the only firm to be effected, their Japanese opponents Sharp and Panasonic have also observed significant losses.

Sony is a small player in comparison to Apple who're worth 10 times as much & Samsung who're worth thirty times as much. The losses coupled with a vague plan of how Sony will recover in the electronics market has began to concern investors.

New Opportunities

In addition to cutting 10,000 jobs Sony will also restructure its present business making a saving of 581mn & make an effort to decrease the fixed costs of its TV business by sixty%.

Sony is seeking to make up for losses in its quick growing medical business hoping to double revenue by 2015. Hirai is also seeking to concentrate the companys efforts on the Play Station Network and especially on making the service available across all Sony hardware potentially opening up a huge library of movies, Television shows and music to customers.

1 area where Hirai & Stringer wanted to expand is Sonys smartphone business. In an attempt to compete with Apple & Samsung, Sony launched their very first smartphone, the Xperia in March of this yr. Sony hoped the Xperia would be able to compete with the Samsung Galaxy S II.

Sony have also identified the battery industry as being a potential avenue for growth particularly batteries for electric devices, a market that may be very profitable because of high profit margins.

What next?

1 thing is for certain Hirai is likely to have a tough couple of months as he attempts to revive the struggling electronics business.

Sony were slow to move into high growth areas such as smartphones and have really paid the price, falling by the wayside as firms like Apple & Samsung became dominant in the market.

Were sure if any company can turn their fortunes around it's Sony.

by: Horatio Smythe

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