News

In a move that acknowledges the increasing convergence of consumer electronics and computer technology, http://www.sony.com"> Sony Electronics has reorganized its US sales and marketing structure, and will emphasize digital performance in its new line of products. Foremost among these developments is Sony's recent announcement that its new line of audio and video products will prominently feature its VAIO personal computers. The notebook computers have editing features for video and motion-picture technology, and are quite popular in Japan, where around 100,000 have been sold.

As the boundaries between audio, video, and information technologies continue to blur, so will the corporate boundaries between Sony">http://www.sel.sony.com">Sony Electronics' audio, video, and information-technology divisions. Last week, Sony announced the creation of a new organization that the company says integrates its A/V and IT companies into one overall "Consumer Electronics Group," or "CEG." Sony adds that the new structure combines the company's Consumer Products Marketing Group and its Personal Network Solutions Company into one organization. Fujio Nishida was named president of CEG; the new organization will become effective April 1.

On March 12, Energy">http://ovonic.com.">Energy Conversion Devices, Inc. announced that Sony">http://www.sony.com">Sony Corporation has expanded its royalty-bearing license under ECD's proprietary phase-change rewritable optical-memory technology to include advanced technology for use in rewritable CD and DVD optical-memory products. Phase-change technology, invented by ECD, is used in PD and CD-RW rewritable optical-memory discs.

Reuters has reported that Sony">http://www.sony.com">Sony Corporation is experiencing a 20% drop in profits this year, brought about by poor showings from audio and video product sales, slow markets, price wars, and a lack of hit records. The report also stated that the electronics sector, which normally generates the bulk of Sony sales, saw operating profits decline by more than half compared to the previous year.

The Walkman is 20 years old. As part of its celebration of one of the most successful audio products in history, Sonyhttp://www.sony.com/">Sony; has introduced its first personal music player with the capability of downloading music from the Internet. The new Walkman employs Sony's "memory stick" technology to store audio files as large as 32 megabytes. The latest Walkman, which was unveiled last week in Japan and New York, is expected to retail at approximately $400 and should appear in stores in January.

The past several months haven't been kind to the electronics industry. Most manufacturers are suffering from slow sales and backlogged inventory. But one company is painting a slightly different, if confusing, picture. Unless you've drastically slashed margins while quadrupling sales volume, the phrase "record quarterly sales but decreased profits" appears self-contradictory. Yet Sony">http://www.sony.com">Sony Corporation is claiming exactly that for the last quarter of 2001, the company's third fiscal quarter. (Most electronics manufacturers begin new fiscal years April 1.) On Friday, January 25, Sony announced a 14.4% decline in overall profits for the final three months of 2001, due to sagging demand for consumer electronics products. The company reported that sales of electronics decreased 2.8% to ¥1.55 trillion, with operating income for its electronics unit down a stunning 47% to ¥71 billion. The same announcement claimed an all-time quarterly sales record for Sony Corporation as a whole.

Sony announced last week that it has created a new brand product line intended to identify its highest end products: Qualiahttp://www.sony.net/SonyInfo/QUALIA/">Qualia;. Initially, the new line will launch only in Japan, and will include both audio and video products in addition to a small pocket camera. Sony President Kunitake Ando had previously suggested the line would launch by March 2003.