UPDATE: Sony's TV Set Business Shifts Into "Attack" Mode
09 Marzo 2010 - 8:59AM
Dow Jones News
Sony Corp. (6758.TO) said Tuesday its television business will
shift to "attack" mode in the next fiscal year to March 2011,
ramping up shipments by about 70%, with sales of more than 25
million liquid crystal display TVs.
In doing so, Sony aims to couple a growth strategy with its
long-standing, but elusive goal of returning to profitability.
"Fiscal 2010 is really a year when we think we can attack," said
Yoshihisa Ishida, senior vice president in charge of Sony's home
entertainment business at a press conference to introducing a new
3-D TV model.
Taking command of the 3-D TV market is a central element of
Sony's strategy of integrating the company's content with its
electronic devices. Chief Executive Howard Stringer has articulated
a plan to have the company's movie studio and games businesses
drive demand for a wide range of 3-D products.
Yet the Tokyo-based consumer electronics giant expects its TV
operations to lose money for the sixth straight year ending March
31, 2010, predicting a return to profitability in the next fiscal
year. It targets sales of 15 million units for this fiscal
year.
Asked whether the TV division could meet the aggressive sales
target of 25 million units next year while reaching profitability,
Ishida--who took charge of the TV division in a management
reshuffle last year--said, "I believe so."
Sony aims for 10% of its targeted 25 million TV sets to be
capable of 3-D images. The first 3-D models will go on sale June 10
in Japan, with a 46-inch model selling for about Y350,000.
As part of the company's focus on profitability over market
share, Sony has been outsourcing more of its production and
overhauling its supply chain.
But with a number of global TV makers rolling out 3-D models
this year to ride the wave of excitement over 3-D movies, Sony's
3-D offering will lag behind those of some of its rivals, such as
Samsung Electronics Co. (005930.SE) and LG Electronics Inc.
(066570.SE), by several months.
Panasonic Corp.'s (6752.TO) first 3-D model will go on sale in
the U.S. on Wednesday, while Samsung has started selling some
models online.
Sony has yet to announce a launch date for other markets,
including North America, although Ishida said the launch should
come at about the same time as in Japan.
-By Daisuke Wakabayashi, Wall Street Journal; +81-3-6269-2834;
daisuke.wakabayashi@dowjones.com
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