Sony to get out of PC business, concentrate more on mobile and TVWritten by Manish Singh on February 06, 2014 - 05:48AM @refsrc
Sony is getting out of the PC business, the company announced late last night. The Japanese giant is planning to give up the Vaio PC line and focus all its resources into reorganizing its TV venture, along with mobile devices. As a part of the deal, around 5,000 employees will be losing their jobs.
The company is selling its Vaio PC unit to Japan Industrial Partners (JIP) for an undisclosed sum. Around 250 to 300 employees will also be joining JIP. Sony will stop any further PC production, designing and sales come Spring of this year. JIP, meanwhile, will primarily focus on building strong roots at home “while evaluating possible further geographic expansion.”
Sony is already a big player in the TV business. Over the past few months, the company has done remarkably well with its ultra-definition 4K TV. And this is a good sign, since the company is planning to focus on its high-end products. But at the same time, Sony knows that this transition will take some time to settle in. The company believes that it will only be in the next fiscal year when it will start making any substantial profits, as mentioned in a statement, “with the aim of establishing a structure capable of delivering stable profit beginning in the fiscal year ending March 31, 2015.”
Sony's CEO Kaz Hirai seems pretty confident with this move and hopes that the company will soon be producing more affordable TVs.
“If and when this commoditization of 4K TVs comes along - and at some point it will - we need to have an organization that is working as efficiently as possible with the lowest cost but with the highest quality .. to make sure we are withstanding the wave of price reductions that we will inevitably see,” Hirai said.
How do you feel about this change?