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Tag - Kaz Hirai
Sony could be relaxing its push to release smartphones in the United States, in order to protect its sales in Japan and Europe. CEO Kaz Hirai advised that, in terms of smartphone sales, Sony's "biggest priority is maintaining our share in Japan or increasing it," as it attempts to fight off the rising popularity of the iPhone in its home country.
Corporate strategies are a dime a dozen, so when Sony CEO Kaz Hirai unveiled his ‘One Sony’ vision people would have been right to view it with a healthy dose of scepticism. It certainly sounded good on paper, but “the proof of the pudding is in the tasting” as the saying goes. If there ever was a company that was crying out for a much more integrated and cohesive approach to its devices and services strategy, it is Sony, a company long viewed to be comprised of fractured and fragmented divisions often pitted against each other, rather than working together harmoniously. It must have been hard to swallow as Sony watched Apple take its crown as the maker of the coolest and most lusted after tech gadgets on the planet.
Sony CEO Kaz Hirai's 'One Sony' philosophy driving the company's restructuring and product focus seems to be paying dividends. The Japanese tech giant has reported its fiscal Q1 results (pdf) and has produced a modest, but significant, profit of $35 million against a $312 million loss for the same period last year. The positive result outstripped analyst’s expectations and was driven by the traction it gained in the tough smartphone segment, with its Xperia line of smartphones shipping 9.6 million units along with favorable currency exchange rates.
Sony has posted a $312 million loss for Q1 (pdf) on sales of $19.2 billion for the months of April to June. Its operating profit fell 77 percent to just $80 million, dramatically worse than a forecast 36 percent drop in profits from the same time last year. One-off restructuring costs, including the transition of Sony Ericsson to Sony Mobile, as well as continued losses from its TV division and weaker that expected demand for its PlayStation lineup ensure Sony suffered yet another loss.
Sony CEO Kaz Hirai has detailed his ‘One Sony’ recovery strategy moving forward. Vowing that ‘Sony will change,’ Hirai’s plan is to focus the company’s energy and resources on its core businesses of digital imaging, gaming and mobile. It will also achieve a return to profitability by slashing 10,000 jobs in order to turn around its record $6.4 billion loss for the past fiscal year.
Sony has revealed (pdf) that it will take a loss double its already previously dire prediction for 2011. As recently as last week it was expected that Sony would announce a $2.7 billion loss for the fiscal year ended March. Instead, it has surprised the market by announcing that it has suffered a record $6.4 billion loss, as it could no longer defer certain US 'tax assets.'
Sony's April 12 strategy meeting might see it make its largest job cut to date. Leaks to the historically accurate Nikkei have had it slashing 10,000 jobs, or about six percent of its worldwide employee base. The Japanese trade paper added that seven executive leaders, including chairman and former CEO Sir Howard Stringer, would likely be asked to forfeit their bonuses.