No.
| Australian Gamer (add me if you like) |
NNID: Maraccuda |
PS Network: Maraccuda |
| czecherychestnut said: Do people actually research anything on this site before posting a topic? Mobile had a small but positive operating income this quarter, and overall they have been profitable (but on in the same league as Samsung). The huge loss this quarter was due to a writedown in goodwill of the mobile division. Goodwill is basically the difference between a businesses assets and its perceived worth, and is often referred as the value of the brand itself. As an example, if company A buys company B for $10 million, and company B has $2 million in assets, then company A accounts for this by registering a goodwill worth of $8 million. However, if later down the track company A reassesses the value of company B (now a subsidiary) and decides its worth only $5million, then the company posts a goodwill writedown of $5 million, and that writedown is treated as a cost. If subsidiary B only made a $3 million operating profit that year, then it would actually be booked as a $2 million loss. In Sony's case, the goodwill of the mobile business was inflated by how much it cost Sony to buy out Ericsson's share of Sony Ericsson. This in part is due to Sony's desire to take over the mobile venture entirely, meaning that Ericsson knew it could overvalue its share and Sony would still likely buy it. However, now Sony has reassessed the value of mobile and has decided that mobile is only worth what its assets are worth, and as a result has written mobiles goodwill down to zero. As a result, there can be no further writedowns in goodwill for mobile (because its now worth zero) and therefore this is definitely a one-off cost. In a nutshell, Sony is doing now what it should have done when they bought Ericsson's share out, written down the delta between the purchasing price and the tangible assets they got from the purchase. Sony likely didn't do that because they were already making large losses in television, and due to tax reasons wanted to save that loss for when they started making money (because you only pay tax on profit). The flipside is that now the writedown has been done, future performance of mobile will be around the same as it was before, profitable but not hugely so. In summary, Sony shouldn't spin off mobile, the large loss this quarter is unrelated to the actual business performance of the mobile division, but merely an accounting necessity born out by Sony spending more on Ericsson's share than arguably it should. If you want to doom mobile, at least wait until they've made a string of losses from an operating perspective. |
This post wins.
Sony has hit the rest button for the mobile division, but it is starting with a solid product, and building momentum. The Z line is sold at decent profits, and just needs to land on all carriers along with a good marketing campain. They have the software and services to make it a winner and a cash cow. Now they just need the market share to demand the network support from carriers.
Stop hate, let others live the life they were given. Everyone has their problems, and no one should have to feel ashamed for the way they were born. Be proud of who you are, encourage others to be proud of themselves. Learn, research, absorb everything around you. Nothing is meaningless, a purpose is placed on everything no matter how you perceive it. Discover how to love, and share that love with everything that you encounter. Help make existence a beautiful thing.
Kevyn B Grams
10/03/2010
KBG29 on PSN&XBL
| czecherychestnut said: Do people actually research anything on this site before posting a topic? Mobile had a small but positive operating income this quarter, and overall they have been profitable (but on in the same league as Samsung). The huge loss this quarter was due to a writedown in goodwill of the mobile division. Goodwill is basically the difference between a businesses assets and its perceived worth, and is often referred as the value of the brand itself. As an example, if company A buys company B for $10 million, and company B has $2 million in assets, then company A accounts for this by registering a goodwill worth of $8 million. However, if later down the track company A reassesses the value of company B (now a subsidiary) and decides its worth only $5million, then the company posts a goodwill writedown of $5 million, and that writedown is treated as a cost. If subsidiary B only made a $3 million operating profit that year, then it would actually be booked as a $2 million loss. In Sony's case, the goodwill of the mobile business was inflated by how much it cost Sony to buy out Ericsson's share of Sony Ericsson. This in part is due to Sony's desire to take over the mobile venture entirely, meaning that Ericsson knew it could overvalue its share and Sony would still likely buy it. However, now Sony has reassessed the value of mobile and has decided that mobile is only worth what its assets are worth, and as a result has written mobiles goodwill down to zero. As a result, there can be no further writedowns in goodwill for mobile (because its now worth zero) and therefore this is definitely a one-off cost. In a nutshell, Sony is doing now what it should have done when they bought Ericsson's share out, written down the delta between the purchasing price and the tangible assets they got from the purchase. Sony likely didn't do that because they were already making large losses in television, and due to tax reasons wanted to save that loss for when they started making money (because you only pay tax on profit). The flipside is that now the writedown has been done, future performance of mobile will be around the same as it was before, profitable but not hugely so. In summary, Sony shouldn't spin off mobile, the large loss this quarter is unrelated to the actual business performance of the mobile division, but merely an accounting necessity born out by Sony spending more on Ericsson's share than arguably it should. If you want to doom mobile, at least wait until they've made a string of losses from an operating perspective. |
Very good white up , we need more posts like this
| czecherychestnut said: Do people actually research anything on this site before posting a topic? Mobile had a small but positive operating income this quarter, and overall they have been profitable (but on in the same league as Samsung). The huge loss this quarter was due to a writedown in goodwill of the mobile division. Goodwill is basically the difference between a businesses assets and its perceived worth, and is often referred as the value of the brand itself. As an example, if company A buys company B for $10 million, and company B has $2 million in assets, then company A accounts for this by registering a goodwill worth of $8 million. However, if later down the track company A reassesses the value of company B (now a subsidiary) and decides its worth only $5million, then the company posts a goodwill writedown of $5 million, and that writedown is treated as a cost. If subsidiary B only made a $3 million operating profit that year, then it would actually be booked as a $2 million loss. In Sony's case, the goodwill of the mobile business was inflated by how much it cost Sony to buy out Ericsson's share of Sony Ericsson. This in part is due to Sony's desire to take over the mobile venture entirely, meaning that Ericsson knew it could overvalue its share and Sony would still likely buy it. However, now Sony has reassessed the value of mobile and has decided that mobile is only worth what its assets are worth, and as a result has written mobiles goodwill down to zero. As a result, there can be no further writedowns in goodwill for mobile (because its now worth zero) and therefore this is definitely a one-off cost. In a nutshell, Sony is doing now what it should have done when they bought Ericsson's share out, written down the delta between the purchasing price and the tangible assets they got from the purchase. Sony likely didn't do that because they were already making large losses in television, and due to tax reasons wanted to save that loss for when they started making money (because you only pay tax on profit). The flipside is that now the writedown has been done, future performance of mobile will be around the same as it was before, profitable but not hugely so. In summary, Sony shouldn't spin off mobile, the large loss this quarter is unrelated to the actual business performance of the mobile division, but merely an accounting necessity born out by Sony spending more on Ericsson's share than arguably it should. If you want to doom mobile, at least wait until they've made a string of losses from an operating perspective. |
Good read. I never understood this til now. Thanks.
“Ore no... Kachi da!”
I find Sony phones to be the best on the market, but see that they have some real problems with the mobile division as of late. I bought a Z1 Compact half a year ago, they introduced Z2 some time later and now we already have a Z3? That's a bit too fast, Sony, it's faster than Samsung. Get to grips.
Also, they have to improve their PR big time. They've been the first to introduce water-resistant phones and tablets, which is a massive step forward, yet totally failed to market that! Now Samsung and Apple finally managed to catch up and it almost feels like it was their invention. Their ads are so, so much better.
Sony makes some of the top products, yet totally fails at marketing them. Still, I believe becoming the 3rd player on the market is easily within their grasp and they should go for it. It's not like the mobile market is gonna shrink any time soon.
Wii U is a GCN 2 - I called it months before the release!
My Vita to-buy list: The Walking Dead, Persona 4 Golden, Need for Speed: Most Wanted, TearAway, Ys: Memories of Celceta, Muramasa: The Demon Blade, History: Legends of War, FIFA 13, Final Fantasy HD X, X-2, Worms Revolution Extreme, The Amazing Spiderman, Batman: Arkham Origins Blackgate - too many no-gaemz :/
My consoles: PS2 Slim, PS3 Slim 320 GB, PSV 32 GB, Wii, DSi.
| czecherychestnut said: Do people actually research anything on this site before posting a topic? Mobile had a small but positive operating income this quarter, and overall they have been profitable (but on in the same league as Samsung). The huge loss this quarter was due to a writedown in goodwill of the mobile division. Goodwill is basically the difference between a businesses assets and its perceived worth, and is often referred as the value of the brand itself. As an example, if company A buys company B for $10 million, and company B has $2 million in assets, then company A accounts for this by registering a goodwill worth of $8 million. However, if later down the track company A reassesses the value of company B (now a subsidiary) and decides its worth only $5million, then the company posts a goodwill writedown of $5 million, and that writedown is treated as a cost. If subsidiary B only made a $3 million operating profit that year, then it would actually be booked as a $2 million loss. In Sony's case, the goodwill of the mobile business was inflated by how much it cost Sony to buy out Ericsson's share of Sony Ericsson. This in part is due to Sony's desire to take over the mobile venture entirely, meaning that Ericsson knew it could overvalue its share and Sony would still likely buy it. However, now Sony has reassessed the value of mobile and has decided that mobile is only worth what its assets are worth, and as a result has written mobiles goodwill down to zero. As a result, there can be no further writedowns in goodwill for mobile (because its now worth zero) and therefore this is definitely a one-off cost. In a nutshell, Sony is doing now what it should have done when they bought Ericsson's share out, written down the delta between the purchasing price and the tangible assets they got from the purchase. Sony likely didn't do that because they were already making large losses in television, and due to tax reasons wanted to save that loss for when they started making money (because you only pay tax on profit). The flipside is that now the writedown has been done, future performance of mobile will be around the same as it was before, profitable but not hugely so. In summary, Sony shouldn't spin off mobile, the large loss this quarter is unrelated to the actual business performance of the mobile division, but merely an accounting necessity born out by Sony spending more on Ericsson's share than arguably it should. If you want to doom mobile, at least wait until they've made a string of losses from an operating perspective. |
I see many have already quoted this, but I'll do the same and thank you for explanation.
As for actual phones, I find Xperia Zs great (both big and compact), better than anything that competition is offering in Android market due to overall features and exceptional battery life, so I'm not sure why Sony is not doing better job at making people recognizing this (though I do see some increase in number of people getting them around me, mostly dropping Samsung).
honestly sony is just super dumb with their tv and mobile decisions they are obvious and simple decisions to be made
carry multiple carriers in the usa and worldwide , but do they do that no
no like a phone enough anymore to fork over $600 against a $360 year long contract
make cheaper phones and increase their marketing
make cheaper tvs damnit and market them
no one is into luxury tvs!!!!!!!! when they are cheaper versions with no differences
arghhh such obvious and simple decisions
Why not? They had the TV division losing money for years and they where fine.
"I've Underestimated the Horse Power from Mario Kart 8, I'll Never Doubt the WiiU's Engine Again"
| czecherychestnut said: Do people actually research anything on this site before posting a topic? Mobile had a small but positive operating income this quarter, and overall they have been profitable (but on in the same league as Samsung). The huge loss this quarter was due to a writedown in goodwill of the mobile division. Goodwill is basically the difference between a businesses assets and its perceived worth, and is often referred as the value of the brand itself. As an example, if company A buys company B for $10 million, and company B has $2 million in assets, then company A accounts for this by registering a goodwill worth of $8 million. However, if later down the track company A reassesses the value of company B (now a subsidiary) and decides its worth only $5million, then the company posts a goodwill writedown of $5 million, and that writedown is treated as a cost. If subsidiary B only made a $3 million operating profit that year, then it would actually be booked as a $2 million loss. In Sony's case, the goodwill of the mobile business was inflated by how much it cost Sony to buy out Ericsson's share of Sony Ericsson. This in part is due to Sony's desire to take over the mobile venture entirely, meaning that Ericsson knew it could overvalue its share and Sony would still likely buy it. However, now Sony has reassessed the value of mobile and has decided that mobile is only worth what its assets are worth, and as a result has written mobiles goodwill down to zero. As a result, there can be no further writedowns in goodwill for mobile (because its now worth zero) and therefore this is definitely a one-off cost. In a nutshell, Sony is doing now what it should have done when they bought Ericsson's share out, written down the delta between the purchasing price and the tangible assets they got from the purchase. Sony likely didn't do that because they were already making large losses in television, and due to tax reasons wanted to save that loss for when they started making money (because you only pay tax on profit). The flipside is that now the writedown has been done, future performance of mobile will be around the same as it was before, profitable but not hugely so. In summary, Sony shouldn't spin off mobile, the large loss this quarter is unrelated to the actual business performance of the mobile division, but merely an accounting necessity born out by Sony spending more on Ericsson's share than arguably it should. If you want to doom mobile, at least wait until they've made a string of losses from an operating perspective. |
This is the first time I actually understood what the freak happened. Thank you for the clear up. Your awesome!
About Us |
Terms of Use |
Privacy Policy |
Advertise |
Staff |
Contact
Display As Desktop
Display As Mobile
© 2006-2026 VGChartz Ltd. All rights reserved.
