Sony Vaio PC Gets the Axe: 5 Lines SNE Won’t Get Rid Of

Goodbye Sony Vaio and Reader e-books, but there are some businesses Sony will hold onto

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Sony Vaio PC Gets the Axe: 5 Lines SNE Won’t Get Rid Of

The Sony Vaio PC is Dead (5 Lines SNE Won’t Get Rid Of): Bravia TVs

Sony TV Sony Vaio PC Gets the Axe: 5 Lines SNE Won’t Get Rid OfI’m going to go out on a limb and say that Sony won’t get rid of the most obvious problem in its line-up. However, if Kazuo Hirai can’t staunch the bleeding over the next year and those Bravia 4K TVs fail to sell, that could change.

Despite what a drag the TV business is on Sony’s bottom line and the obvious damage the business is doing to the company (10 straight years of losing money will do that), Sony is standing by it — at least for now.

Aside from the fact that finding a buyer for the TV business in a brutally competitive market would be difficult, those Bravia TVs are a point of pride for Sony. They represent much of its identity as a consumer electronics giant. Sony has always been seen as a premium brand in the living room and storied names like Trinitron, Wega and Bravia have often topped videophile wish lists.

Sony is still a major presence (No. 3 in worldwide TV marketshare), and it has released some very well received Bravia 4K TVs. If it could finally get out of the red, the sheer number of sets it sells could make TVs a profitable line once again.

Kazuo Hirai does seem to be hedging his bets on this one, though. While it’s keeping the TV business, Sony is creating a subsidiary for it — a sign that it might be willing to eventually spin it off later.

But if the company continues to struggle in 2014, no matter how big a part of Sony those Bravia TVs might be, there are going to be increased calls to have the Bravia join the Sony Vaio as just a memory in 2015.

As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2014/02/sony-vaio-dead-5-lines-sne-wont-get-rid-of/.

©2014 InvestorPlace Media, LLC

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