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Sony Mobile merges with television, audio and venture companies to avoid further losses



Sony announced earlier this week " Restructuring Key Business and Executive Appointments ," in force since April 1, 2019. The very short message also contains important information about the company's core business and changes will affect them

In a surprising move, Sony has decided to unite three of its most profitable business with the mobile unit: Imaging Products & Solutions (IP & S), Home Entertainment & Sound (HE & S) and mobile communications will be united an enterprise called Electronics Products & Solutions (EP & S).

Another important piece of information is that le Sony's chief executive Kazuo Hirai, the man who runs one of the most surprising twists in the Japanese electronics industry, will retire in June after 35 years of work in the company

Hirai surrenders CEO's position to Kenichiro Yoshida a year ago, and while he will retire on June 1

8, he will continue to provide advice at the request of Sony's management team acting as Senior Advisor to the company.

Kazuo Hirai is the architect of an incredible twist. After losing $ 4 billion, Hirai's newly appointed CEO has reduced the number of smartphones and televisions and managed to win a small profit in fiscal 2014.

More importantly, his bet on the gaming division has paid off a lot of time, the same is true for investment in image sensors, as Sony is already one of the largest providers of camera components in the smartphone industry.

At the time he resigned from the CEO's position, Sony's entertainment and imaging products companies were more profitable than ever (and still are), but the smartphone department is still bleeding money.

Is It Good To Hide The Problem Under The Carpet?

Sony's mobile subsidiary sales reports came out last year, likely to put more pressure on the company's current chairman, Kenichiro Yoshida. Today's announcement puts an end to these rumors but questions the decision to hide the problem under the carpet. [19659909] Sony Xperia XZ3 “/>

After a fourth consecutive unprofitable quarter, it seems Sony is determined to hide the losses of the mobile unit. behind a conglomerate of profitable businesses. In case you're wondering why Sony is still betting on smartphones, the Japanese company said that 5G is a technology that can turn things around for the better.

How do we do it, it remains to be seen. Most importantly, we will probably see fewer red figures in Sony's earnings reports every quarter as the profits of the other three companies are more than enough to hide the losses of the mobile unit. not this "rearrangement" means redundancies in the mobile unit's staff or this is merely administrative reorganization. Sony cut 200 employees in Europe in December to cut spending in a number of mobile business areas, and a few days ago the Japanese company confirmed its plans to close a whole smartphone factory in China. we can see fewer Xperia smartphones on the market, although if things go unexpectedly well, Sony can always use third-party manufacturers to complement stocks if they need it.

It's quite clear that Sony Mobile is not what it once was, but if the Japanese company thinks this is the way we can save our smartphone, we are for it.


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