Slumping TV and music player sales force Sony to shift its focus on consumer needs
New York, NY, United States (4E) – Sony is looking to focus on cloud computing and consumer needs after posting four consecutive losses in its fiscal reports. The Japan-based electronics manufacturer has experienced struggling sales of its TVs and music players.
Executive vice president of technology and corporate research development Shoji Nemoto believes that the company must be willing to accommodate its customers needs to reduce losses.
Sony plans to invest in start-up technology and companies that will help its mobile devices. Apple’s iPhone and iPad have won over consumers who formerly purchased Sony products. Sony has spent as much as $5.5 billion on research and development while Apple has spent only half as much based on data compiled by Bloomberg.
“One of the problems is that Sony’s R&D spending hasn’t really led to products, sales or profit. Any company would want to boost earnings from R&D, but it hasn’t really worked well for Japanese manufacturers,” SMBC Nikko Securities Inc. analyst Kazuharu Miura said, according to Bloomberg.
Analysts believe that Sony’s Clie music player could have sold more if the company focused on the needs of customers. By March next year, Sony estimates its going to spend $6 billion on research and development.
Sony’s video game console PlayStation burned through the company’s research and development sector and is the fourth largest spender in Japan in that category — Toyota spends the most on research and development followed by Panasonic and Honda.
Nemoto adds that Sony has to “create something interesting” to attract consumers to its mobile devices. He also believes the money spent on design and trial models should be controlled.