Sony Celebrates 30th Anniversary of Walkman With Lousy Earnings
Sony’s net loss in the quarter was 37.1 billion yen ($390 million), a brutal change from the 35 billion yen profit in the year-ago period. Still, it was smaller than the 109.6 billion yen loss analysts polled by Thomson Reuters had been expecting. That said, all three of Sony’s core electronics divisions registered losses for the quarter.
Not a good sign. Because while the company’s smaller-than-expected loss proves its cost-cutting measures have been effective, it also shows that Sony (SNE) must do more than just slash jobs and suppliers if it ever hopes to regain its position in the market. For while cost-cutting might improve Sony’s bottom line, it’s not going to make the company competitive against Samsung, Nintendo and Apple (AAPL), who’ve usurped its position in TVs, gaming consoles and media players, respectively. What Sony needs most is not more cost-cutting; it’s a new gotta-have-it product.
Seriously. It’s been, what, 30 years since the debut of the Walkman?