Do you remember the day when Sony (SNE) was the big dog on the block? The company was winning on many fronts, from televisions to computers to mobile phones among others.
Then something happened. Innovation stopped, consumers started to look at other companies and things took a turn for the worse.
Not only did this impact the company and consumers, but investors have been hit hard as well.
Consider this: Sony is off some 90% from its all-time peak around $150 in 2000, 70% from its pre-crisis highs, and 20% in the past year alone.
A Change Is Coming
While some smartphone vendors continue to push out low-end devices in hopes of grabbing market share, others are taking the high road — and SNE is among them.
Sony Mobile plans to focus more resources on high-end smartphones in hopes of getting consumers excited again — and in hopes of boosting sales performance to get investors excited again.
A report from Digitimes sums it up, saying:
“The sales performance for Sony Mobile high-end smartphones in the US, China and Europe markets have not been good, while sales of entry-level and mid-range models in emerging markets are lacking as well due to less competitive performance-price ratios than models launched by China-based vendors, the sources indicated.”
With this in mind, the company appears to be ditching some of its entry- and mid-level models that are currently under development. Instead, it will target the top end of the market.
While this plan sounds good in theory, investors aren’t oblivious to the notable competition at the top of the mountain. Namely, does Sony have what it takes to compete with the likes of Apple Inc. (AAPL) and Samsung (SSNLF), among others?
If so, Sony will finally have some new life. If not, investors could find themselves in more pain than they’re already in.
As of this writing, Chris Bibey did not hold a position in any of the aforementioned securities.
