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

Forums - Sony Discussion - Sony sells LCD venture.

markers on 27 December 2011
kowenicki said:
theprof00 said:
kowenicki said:
Lostplanet22 said:
Galaki said:
kowenicki said:

Surprised this hasnt been posted, this is quie a big deal.

It's not posted because people'd get yelled at for posting negative Sony news.

With shares going up and losing one part that is responsible for quite some losses I would rather call this positve news if anything.

bitter-sweet

they have taken a big loss as a one off to facilitate this and if it doesnt work then its the end of sony tv's i think.

I'm struggling to figure out what you're calling the loss here.

Is it the sellback price falling short of the original investment?

Also, it looks like it says LCDs. Why are you saying they'd pull out of the tv business altogether?

$1.5 or $1.6bn on the balance sheet just evaporated and was bought out a lower price... thats a loss.

Sell your house for half its value... thats a loss.

I'm not saying they will pull out of the business all together... I am just saying that possibility is now more likely and is easier to achieve for Sony.  

Put it this way... I'm pretty sure flogging off a number of large TV manufacturing plants all over the globe and then selling this to Samsung having earlier sold the smaller screen (less than 32") manufacturing facility to the Janapese government owned "japan display" isnt exactly a list of initiatives aimed at growing the TV business.

 

 


LCD is old tech? Maybe a move for the future



Around the Network
theprof00 on 27 December 2011
kowenicki said:

$1.5 or $1.6bn on the balance sheet just evaporated and was bought out a lower price... thats a loss.

Sell your house for half its value... thats a loss.

I'm not saying they will pull out of the business all together... I am just saying that possibility is now more likely and is easier to achieve for Sony.  

Put it this way... I'm pretty sure flogging off a number of large TV manufacturing plants all over the globe and then selling this to Samsung having earlier sold the smaller screen (less than 32") manufacturing facility to the Janapese government owned "japan display" isnt exactly a list of initiatives aimed at growing the TV business.

An inhabitable house?

That's a business fallacy, and one that gets companies into trouble all the time. Just because you invested money into something doesn't mean you ened to hold onto it. Companies often look at those expenditures as if it's sitting on the table. But in reality, that 1.5b was lost right at the initial outset. It's already gone.



Acevil on 27 December 2011
theprof00 said:
There is more than just lcd. There is lcd led oled plasma and more kinds on the way, not to mention projectors, rear projection, tube, etc

Don't understand why you'd say this is the end and they'd have to buy all their screens from samsung. Does Sony ONLY manufacture LCD screens already?


 LCD business includes LED displays. Sony left plasma awhile ago. From my basic understanding is that LED is the next evolutionary step from (Actually don't know the name) LCD (the ones commonly refered to LCD). 



 

thehusbo on 27 December 2011

Hopefully it works out for them. I love sonys products but price, especially for their tv's is high in comparison to other tv's which are of similar quality.



snakenobi on 27 December 2011
kowenicki said:
snakenobi said:
kowenicki said:
darkknightkryta said:
So Sony part owned LCD technology and they somehow got no royalties? And aside from R & D savings, how will this help Sony in the long run?


They didnt part own LCD technology, they owned a joint company with Samsung that made LCD panels...

Now they will have to buy in panels for all of their TV's.  So no stock or maufacturing subsidy/variables, but they arent the masters of their own destiny if suppliers play hard ball over prices.

 

they can't play hard ball as fair-trade laws apply

and this venture was just producing close to 1-2million panels where both SONY and SAMSUNG sell over 100million panels every year across phones,TVs,cameras,PSP,tablets,monitors,etc

 

also they will not buy all their panels as they still have a venture with sharp


which Sony own 7% of...


so,does that make a difference?

they can either buy panels or invest the same money into buying investment share.

and all japanese manufactures need each other as YEn affects all of them



Around the Network
snakenobi on 27 December 2011
spurgeonryan said:
That is what Samsung does, their business model I guess. Sit back and wait for technology to come out and make it better, or sit back and wait till others cannot do it anymore then take advantage. Really a smart company I think. At least that used to be their model....

hehe

they are just a super-big giant corporation so they get the benefit.they produce from ships to consumer devices

atleast they are a technology and productivity company which is good,not like giant  banking and insurance corporations

 

though the bigger you are the faster you fall as they will start to disconnect and the problem of brand power goes away as its not 'COOL' anymore



Jexy on 27 December 2011

Good news for a company that sucks at running a profitable business. Bad news if they ever get their act together since other companies are able to make a profit on those very same things. But since Sony has lost what, 82% of their value over the past decade? Gotta make SOME moves.



BOOM!  FACE KICK!

theprof00 on 27 December 2011

http://en.wikipedia.org/wiki/Sunk_costs

;sunk cost fallacy, read about it.
Your perspective is an irrational one.

It is a loss, but keeping it is a greater loss.

The option of making it profitable is an impossible suggestion. This is good news, not bad, not 50:50. It is a change in the decision making process where they've been blinded by loss aversion. Loss aversion and sunk cost fallacy tend to derive from bad leadership.

This isn't just good news because they've gotten rid of something that is costing them money (which is in fact something you JUST SAID in an earlier thread about how Sony needs to get back on track as their tv division has been costing them profits the past 6 years), but also because it depicts a change in their decision making, smarter business.



Tridrakious on 27 December 2011
kowenicki said:
Galaki said:
kowenicki said:

Surprised this hasnt been posted, this is quie a big deal.

It's not posted because people'd get yelled at for posting negative Sony news.

Not neccesarily negative though....  it might be, but it might not be.

Yes its a large kick in the bollocks right now (almost a $1bn kick in the nuts) but it may help them reduce losses in the TV area.  This is clearly last chance saloon for the TV business though and my take though is that there is a good chance Soy could exit TV's all together if this move doesnt work in the next 24 months.  

They now only manufacture panels in conjunction with Sharp (Sony have 7% of that venture) so all they will be doing is taking other peopels panels and wrapping them in a sony box.    They need to be cheaper to compete, I dont see that happening... it doesnt match the brand.


This was a smart decision on Sony's part. It sucks to give something up, but it was killing their numbers. This is the kind of decision making Kaz brings to the table. Something Howard Stringer just does not have. Personally I can't wait for Stringer to be completely out the door. He failed the company over the last 6 years.



Turkish on 27 December 2011

Samsung owns 49% of the 3D market, Sony buys Samsung panels yes, but even Samsung buys their panels from 3rd parties aswell.