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Sony Mobile is merged with television, audio and camera companies to avoid further losses



Earlier this week, Sony announced a "19459003] conversion of key business and executive appointments " with effect from April 1, 2019. The very brief notice also contains important information about the company's principal businesses and the changes that will affect them starts next week.

In a surprising feature, Sony has decided to merge three of its most profitable businesses with the mobile department. Imaging Products & Solutions (IP & S), Home Entertainment & Sound (HE & S) and mobile communications companies will be combined in a single unit called Electronics Products & Solutions (EP & S).

Another important piece of information is that Sony's legendary president Kazuo Hirai, the person who succeeded one of the most surprising turnarounds in the Japanese electronics industry, will retire in June after 35 years of working for the company .

Hirai passed the CEO of Kenichiro Yoshida a year ago, and while retiring on June 1

8, he will continue to advise as requested by Sony's senior management team of the company.

Kazuo Hirai is the architect of a fantastic turn. After a $ 4 billion loss, Hirai, the newly appointed CEO, slammed into smartphones and TVs and managed to make a small profit in the financial year 2014.

Even more importantly, his bets on the gaming department paid a lot of time and the same was true of The investment in image sensors, as Sony is now one of the largest suppliers to the camera components in the smartphone industry.

As he stepped down from the director's position, Sony's entertainment and imaging companies were more profitable than ever (and still are), but the smartphone division continues to soften money.

Is it a good idea to hide the problem under the blanket?

Reports of a possible sale of Sony's mobile division surface last year, likely to put more pressure on the company's current chairman, Kenichiro Yoshida. Today's advertising puts an end to these rumors, but asks the decision to hide the problem under the rug.

  Sony Xperia XZ3

After a fourth straightforward quarter, Sony seems to hide the losses in the mobile division behind a conglomerate of profitable businesses. If you are wondering why Sony is still betting on smartphones, the Japanese company said that 5G is the kind of technology that can do things for the better.

How to do it, it must be seen. The bottom line is that we will probably see less red numbers in Sony's revenue reports every quarter, as the profits of the other three companies are more than enough to hide the mobile division's losses.

What the official statement does not cover is whether or not this "adjustment" means resignation from the mobile department, or it is merely an administrative reorganization. Sony dismissed 200 employees in Europe back in December to cut costs in a number of mobile business areas, and a few days ago, the Japanese firm confirmed plans to close an entire smartphone factory in China.

With the smartphone factory closed, we might see smaller Xperia smartphones on the market, but if it goes unexpectedly well, Sony can always use third-party manufacturers to supplement stock if needed.

Clearly, Sony Mobile is not what it once was, but if the Japanese company thinks it is the way it can save on its smartphone business, we are all with it.


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