Struggling Sony chops nearly $1 billion off 2008 earnings forecast

“Consumer electronics giant Sony Corp. today slashed its earnings forecast for the 2008 fiscal year, saying profits will be down nearly 40 percent from a prediction the company made this summer and about 60 percent from the previous year,” Mike Musgrove reports for The Washington Post.

“In a statement released from its headquarters in Tokyo, Sony singled out sales of flat-panel televisions, digital cameras and video cameras as likely to be lower than previously expected ‘due to a deterioration in the market environment brought on by the slowing global economy.’ The company says it now expects earnings of 150 billion yen, or $1.5 billion, down from a July forecast of 240 billion yen, or $2.4 billion,” Musgrove reports.

“While Sony has often been regarded as a bellwether for the industry in the past, the company’s woes are sharper than those of some competitors. This week, for example, Apple Inc. reported brisk sales of Mac computers and iPhones. The company forecast sales in this upcoming quarter to be flat compared to its performance in the year-ago quarter,” Musgrove reports.

“Sony had been struggling long before the economy’s current troubles. Chief executive Howard Stringer took the helm in 2005 and launched a major reorganization in an attempt to restore the company’s luster as an electronics pioneer,” Musgrove reports.

Full article here.

27 Comments

  1. I have a love hate relationship with Sony. As much as I hate having a drawer full of random Sony chargers, I’d like to see them flourish.

    Sony products are either genius or crap and they somehow manage to cripple their genius products with crappy interfaces and/or proprietary memory and/or product specific chargers.

  2. STEVE BUY SONY!!!!!!!!!!!!!!!!! PLEASE!!!!!!!
    Get it while they are hurting. YOU WILL THE BLU-RAY license and won’t ever have to worry about licensing and you could kill off the crap they’ve made and keep all the really goodones and put the apple spin on it.

  3. Sony’s problem is that they often push proprietary things on the market. In the case of Blu-Ray, it has worked out — sort of (ask Steve Jobs about the future of that format).

    But things like the mini-disc were force fed to consumers who didn’t want them. Instead of getting to work on a great MP3 player, Sony and all the other companies let Apple bust the door down.

    Sony is one company I’d love to see Apple buy. The first thing Jobs would do is cut 2/3 of the shit Sony makes. But you know the 1/3 left would be refined and beautiful. Apple could push a few of its half-baked products or non-premier products out the door under that brand name. Imagine the Sony A-series of products, for example. Displays would be one area right away that Apple could make a little money in even with lower margins.

    The thing is, Apple is a unique brand that can’t ship crap or have sub-30 margins. For Sony, that’s not as true. But Sony is definitely in the middle tier of brands. They don’t always make the best, but they rarely make the worst.

    Steve, buy Sony!

  4. Note to MDN:

    I really would like the abillity to edit post at these forums.

    Other then that… really liking your dedication to all things Apple ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  5. No way is Apple gonna buy Sony in this mess… but wait: it could. And then it will be the no. 1 most popular laptop maker, no. 2 most popular phone manufacturer… but no. Sony makes disgusting technology (having used it a lot myself) and Apple doesn’t like that. Oh no. But they can still compete!

  6. On another note, Sirius XM Radio is trading at 0.25. Somebody big is going to pooperscoop them up at that price. Satellite radio has some new competition, but nothing set in stone yet.
    Apple could add satellite radio to the next iPod and wants to make further headway into automobiles like satellite radio already has.
    Maybe DISH or DirectTV will scoop them up, as they are already in bed together with the actual satellites. Just too cheap a price to ignore and they can’t get much lower. I hope Apple is interested, as they had talks a few years ago. The next iPod needs a major upgrade area.

  7. If apple were to buy sony, they would sell off the operations that they don’t want. Seriously apple could highly benefit from this. They would have so many options to decide what to do with each section of sony and eith make some money back or definetly lower the cost of buying them out. but it still would allow them to get their hands on products/patents(cough cough blu-ray) they plan to invest in.

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