By using this site, you agree to our Privacy Policy and our Terms of Use. Close
kowenicki said:
comments:

But analysts have been underwhelmed by Mr Hirai's announcement.

"I for one was expecting more," said Pelham Smithers, who runs his own consultancy specialising in the electronics industry.

"This presentation has the same feel as a presentation made three to four years ago when the previous chief executive, Howard Stringer, tried to restructure."

"But back then Samsung and Apple were not as powerful as they are today," he said.

Toshiyuki Kanayama, senior market analyst at Monex said: "I don't see anything new here. They've talked before about bringing the TV business back to profits. The comments about the electronics business are the same."

"Nothing has changed from what they've flagged in the past, including the M&A plans in the medical field," he said.

Sony's television business has lost money for the past eight years. Analysts say that while it sells about 20 million TV sets a year, it is still not big enough to be profitable.

To tackle that problem Sony is planning to cut costs in the business by 60% by March 2014.

"If they're planning to cut fixed costs by 60%, that signifies the closure of one factory, and the business can shrink. That's not necessarily a bad thing," said Kikuchi Makoto, chief executive at Myojo Asset Management.

"The problem is that the plan is lacking in specifics on the plus side."

The BBC's Tokyo Correspondent, Roland Buerk, said: "Mr Hirai wants Sony to find a new path by creating products that are really going to wow people."

"But saying that is one thing, doing it is another."

Rival Japanese TV maker Sharp is also forecasting hefty losses. It expects an annual loss of $4.7bn this year.

Wow, thats... thats pretty harsh. 



Yay!!!