> Sony is still the class of the field. Profits are down because they've
> invested lots in chip tech, which will pay off further down the
> line -- in
> particular, the wondrous Cell technology behind the Playstation 3.
"Sony has long argued that its brand power, excellent technology, and superior functionality would shield it against such industry forces. And they may yet, but so far Sony has lost the march in one key product category after another, from DVD players to flat-panel televisions and portable digital music devices. The margin pressure from established players such as Samsung and newer competitors throughout Asia has been relentless.
On Jan. 20, Sony lowered its forecast for total operating earnings in the fiscal year ended Mar. 31 by a whopping 31%, to $1.05 billion. The culprit: Intense margin pressure in TVs, DVD recorders, and personal computers. That matters because, despite the strength of the PlayStation franchise and smash film hits like the Spider-Man series, Sony still relies on consumer electronics for about 60% of sales. That earnings shock for the fiscal year and previous disappointments probably left the board with little choice but to push for a change at the top."
BusinessWeek online MARCH 7, 2005 EYE ON ASIA By Brian Bremner Stringer Leads a Diminished Sony
http://www.businessweek.com/bwdaily/dnflash/mar2005/nf2005037_4799_db087.htm?chan=gb