Posted on 12/27/2011 11:01:16 PM PST by Cronos
In a bid to streamline its unprofitable television business, Sony said Monday that it would sell its stake in its flat-panel screen venture with Samsung Electronics, cutting its production capacity at a time when outsourcing has become the norm for manufacturers.
Sony, which makes the Bravia liquid-crystal-display televisions, said in a statement that it would sell its stake of nearly 50 percent in the jointly owned manufacturer, S-LCD, to Samsung, of South Korea, for 1.08 trillion won, or $935 million.
Sony’s exit from the joint venture, which was set up in Tangjeong, South Korea, in April 2004, will let it switch to less-expensive outsourcing options that may help it to resuscitate its struggling television business. The only other LCD panels Sony manufactures are through its joint venture with Sharp, in which Sony owns a 7 percent stake
Cutthroat competition in a peaking market is squeezing profit margins for TV manufacturers, especially Sony, which analysts have long criticized for its high production costs. ....Last month, Sony warned that it would lose money for its fourth consecutive fiscal year, which ends next March. Sony’s television unit alone accounts for billions of yen in losses.
..For Samsung, those deals stood as an acknowledgment of its emergence as a global player. It has now taken over from Sony as the consumer electronics king. In its latest full financial year, Samsung earned $14 billion on sales of more than $134 billion, while Sony lost $3 billion on sales of $92 billion
In comparison, Apple, the most profitable consumer electronics company in the world, generated $25.9 billion on sales of $108 billion.
(Excerpt) Read more at nytimes.com ...
Sony is in some trouble. They can’t get a premium for their products like they once did.
I just bought a Samsung TV for about 25% less than an equivalent Sony. 20 years ago, a Sony would be worth the premium, but these days, Samsung is a pretty good brand. If anything, the Sony had fewer features for a higher price, with no guarantee of better quality.
Sony has been making some shabby stuff lately. The brand is tarnished and I don’t see them developing another must have item like the walk man anytime soon.
The Blu-Ray players are great. Got one for myself for Christmas. It’s wifi enabled and now I can watch Netflix, Hulu Plus and Amazon’s streaming service on my big screen.
Wow. I bought a 40” Bravia with Surround sound several years ago. A splurge for me, yes..but it is the nicest set I’ve ever owned. And I bought it specifically and just in time for the first ever HD series, Planet Earth. It is a very good product, although not being a geek, I’m sure I’m not exploiting its’ full utility.
I hope that by the time it needs replacing, they’ve come out with something even better...and hopefully, less expensive.
Sony should be. The last two products we bought quit within a year’s time. Luckily we had the extended warranty. Sony replaced the tv with a samsung. Much better tv. The guy who filled our order said they have had an overwhelming demand for replacements due to the same problem.
I used to consider Sony the "gold standard", but they have slipped.
LLS
Times have definitely changed. Back when I was selling TVs and stereos in the mid-80’s, Sony was at the top, followed closely by Mitsubishi and Hitachi.
The American brand names (no longer made in America, for the most part) were shelf-filler - not priced to move and not profitable to sell, so they sat and waited for someone who absolutely had to have a Magnavox or Panasonic or RCA or whatever.
Then there was the new brand, Samsung, or Sam-dogs as we called them. They were dogs that always seemed to come back. It took a long time to get over my reluctance to buy Samsung, but they have come a long way.
maybe..
I bought a 19” Sony Trinitron for $624 in 1985. It looked quite good until 2004. I recently purchased a new set for my family room. I only had interest in a couple of Sony models- and they were in the $2300+ range. I spent less and got one of Sound & Vision magazine’s top sets. Sony’s EX series of home audio is still good but I got much more bang for my buck with Onkyo.
I spent about the same amount for a Trinitron multisystem at RAF Upper Heyford in 1987. (I quit my sales job in 1986 to join the Air Force.) It lasted until 2001, when the crate it was in fell off the moving truck as it was being unloaded. I did buy an Onkyo amp at the same that is still working. They still make awesome stuff, but having a killer audio system is less of a priority for me now. (I’m afraid of what my kids would do with it.)
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