Sony Corp., the once unchallenged electronics industry leader, announced dramatic measures to turn itself around and return to the forefront, making South Korean tech players listen in but not with much alarm.
Market watchers on Friday pointed to the robust presence of South Korean firms in the global market across the board in businesses that Sony concentrates on.
“Sony’s efforts will have only a limited impact on South Korean players’ market share in TVs, as the move (of splitting its TV business) is intended to improve its financial health by cutting off loss-making sectors,” said Song Myung-sup, a researcher at HI Investment & Securities Co.
Sony hinted at an expected earnings shock, saying it was estimating a net loss of 110 billion yen ($1.08 billion) for fiscal 2013, ending March 31.
The preliminary figure marks a sharp backtrack from a net profit of 30 billion yen estimated earlier.
The Japanese firm attributed the grim outlook to its dull TV and PC business, with its mobile sector also remaining sluggish.
Sony said it plans to sell off its VAIO PC business, which was launched in 1996, adding it will also spin off its TV division as an affiliate by July in a bid to focus on its mainstay businesses such as smartphones and tablet devices. (Yonhap)
