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The trouble is there is almost no profit at all in TV's these days (and for most of the last decade too). It is too prestigious and therefore competitive as the
by josephlord 13y ago
The trouble is there is almost no profit at all in TV's these days (and for most of the last decade too). It is too prestigious and therefore competitive as there is still the impression that it is the key part of becoming a major consumer electronics player (I think it is probably wrong these days and mobile phone/tablets may be more important). Differentiation of TVs is hard because features appeal to niche's of the total market and basic picture quality is now good on most products and MOST people can't recognise a good picture if they see it.
Sony has also suffered badly along with Panasonic from the strength of the Yen. A great deal of the cost base is still in Japan even when manufacture is outsourced into local markets which destroys any real possibilities of profit.
I don't know what the effect of making the TV arm it's own subsidiary will be, (it may be mostly to allow profits to be shown in the rest of electronics), but I really don't know what the best thing to do with it would be. I'm not sure it makes commercial sense to make TV's in its own terms but it is doubtful whether Sony could sustain franchised retail chains without TVs so it may affect the total business if they withdrew completely. It would also be a shame as the products are good and there are many good people there but I just can't see a future of long term profitability.
Ex Sony TV Product Planner/Biz Dev (Europe)
- PhantomGremlin 13y agoThe real problem is that an LCD TV isn't something that breaks very often. Nor does it really need adjustment, like the old CRTs frequently did. Sony marketing made 3D a big thing in 2010: http://online.wsj.com/news/articles/SB126281921528818651 http://online.wsj.com/news/articles/SB126281921528818651 Sony Pins Future on a 3-D Revival Jan. 7, 2010 But I had just bought a big screen Sony XBR6 the year before. That TV is still my primary TV, still working fine. I might replace it in another 5 years, "just because". But until then, there had better be a really compelling "breakthrough" for me to justify buying another TV. And, IMO, 3D wasn't it. And 4K isn't it, either, for reasons I already outlined. Most households got rid of their CRTs a long time ago. So the long-time scenario of moving the old TV to the basement doesn't work anymore, because the basement already has an LCD, and that LCD still works great. I agree with you, there's just no future of long term profitability in TVs anymore.