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Sony drops profit forecast, again, thanks to exit from PC market

Written by Andre Yoskowitz (Google+) @ 01 May 2014 22:59 User comments (5)

Sony drops profit forecast, again, thanks to exit from PC market Sony has once again slashed its operating profit forecasts for the fiscal year, this time by 70 percent.
The electronics giant cited its exit from the PC market as the main culprit, with the move costing them up to $300 million in added costs.

Operating profit expectations for the fiscal year were reduced from 80bn ($780 million USD) to 26bn ($253 million USD), and the company's DVD and CD-ROM production unit booked a 25bn ($250 million) impairment loss.

The company still expects a large net loss of 130bn ($1.27 billion), a stark contrast from the net profit the company had forecasted over a year ago.

New CEO Kaz Hirai has been tightening the focus of the company since taking the reigns, and has shuttering and selling businesses that do not fit in the core Sony wishes to achieve. The company has also sold buildings and other tangible assets, netting billions.

Hirai also announced that the company's TV business would be spun off, after losing nearly $8 billion over the past decade. The PC division has been sold. Sony's new focuses are on mobile, imaging and gaming, where its PlayStation 4 console has been a major hit so far.

Source:
Guardian

Tags: Sony Kaz Hirai
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5 user comments

12.5.2014 13:02

No more Sony Vaios or TVs. That sucks.

23.5.2014 6:25

Originally posted by ChiefBrdy:
No more Sony Vaios or TVs. That sucks.
Why does that suck? You've always been able to get equally performing hardware for far less money from other manufacturers.

Aside from the people who love the PS4, Sony as a brand has lost a lot of faith amongst its consumer-base. For a long time now, you've been paying a bunch of extra money just because it has the sony label on it.

33.5.2014 12:01

I don't buy products from a brand that bites the hands that feed it.

43.5.2014 12:32

Originally posted by ChiefBrdy:
No more Sony Vaios or TVs. That sucks.
Vaios; last I read (long time ago) you couldn't work on them / swap out hardware. They were overpriced compared to their competitors. So really you were only paying a premium for having a Sony label.

Hdtv's; again nothing but a name brand. Only Samsung and Panasonic make the actual panels (last I researched when I bought a new tv last summer).


53.5.2014 16:33

Originally posted by bhetrick:
Originally posted by ChiefBrdy:
No more Sony Vaios or TVs. That sucks.
Vaios; last I read (long time ago) you couldn't work on them / swap out hardware. They were overpriced compared to their competitors. So really you were only paying a premium for having a Sony label.

Hdtv's; again nothing but a name brand. Only Samsung and Panasonic make the actual panels (last I researched when I bought a new tv last summer).


Correct, and just like Dell, they were proprietary, and TV's followed suit.

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