Everyone in the USA must have at one point or another made use of a Sony product. Be it the cameras, televisions, smartphones, or even just downloaded a song distributed by their record label. All these are some of the things that make Sony the entertainment giant it is. To think that the company that started off as an inventor of Japan’s first tape recorder when it had only $530 to work with now deals with every aspect of human existence. Sony is the sort of company that was able to earn position 87 on the Fortune Global 500 in 2012. But how does a company that only distributes music, develops electronics and the like still survive in a world where people find ways to download free music and are slowly forgetting about the television? Well, it doesn’t survive.
What?! Then why is Sony still around? You need to understand that Sony Group is just a branch of the tree dubbed Sony Corporation. Now, it is under Sony Corporation that Sony as a corporation survives. That’s because the idea that Sony just develops video games, distributes music, and electronics is nothing more than a fallacy. On top of all these endeavors Sony does something even more iffy. We here might not know so much about it but those in Japan will tell you all you need to know about Sony Financial. Yes, that is it. Sony is not only an electronics manufacturer but also a bank. So now you have this institution that controls the media, your technology, and your money. This is starting to seem like an episode from Ace Ventura. But the fact remains; Sony makes more profit from its bank than as an electronics manufacturer. If that is so then why is the title of this post Sony’s suicide? That’s because the world is evolving faster than the Japanese corporation can handle.
Sony is currently the third largest television manufacturer in the world after Samsung and LG and this position might not improve anytime soon because of a trend that has taken the world by storm; smartphones and tablets. Yes, this concept has rippled through our time space continuum and caused a paradigm shift that was not expected in the beginning. The fact of the matter is that in today’s world people would rather buy a smartphone or tablet as opposed to a television or a camera. That’s because smartphones and tablets are a lot more functional and practical. If you can watch a movie via the internet through your smartphone why do you need to buy internet TV? That’s the mistake that the electronics giant Sony is making. Instead of focusing on smartphones that are better for such applications as TV they develop internet TV. Sony, no one cares. People would much rather have a TV in their pocket than a 42” that will just hang on one’s wall.
When it comes to their smartphone development they have undoubtedly put in great effort and that’s why everyone is anticipating the Sony Xperia X7. However, that hasn’t done much to help the company sustain its position. From its electronics firm Sony makes $88 million after tax which, even to the layman’s ear, is a joke in the corporate world. Now, if you stack that up against Apple’s $55.2 billion. Well, I don’t think I have to say much more. Clearly, we have a winner.
What this has shown is that Sony’s electronics division is almost null and void. Yes, the corporation can, and maybe generations later it will, survive without it. All that simply because people would rather own an iPad than a Bravia or own an iPhone rather than a PlayStation. Yes, Apple is doing great damage to the Japanese firm and because of that Sony had to lay-off 10,000 workers. It’s even hurting the Japanese economy.
So maybe seppuku will be necessary soon enough. Sony should either toss in the towel or crumble under the dominant force of Apple.