Sony is not making losses

harold1968

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  • JULY 29, 2010, 11:06 A.M. ET
Sony 1st quarter to June 2010

"I anticipate that the good momentum will continue," Mr. Stringer said. "There is nothing in the products that I am seeing that would discourage excitement."

For the quarter, Sony posted a group net profit of 25.74 billion yen ($294.3 million) in the fiscal first quarter ended June 30, reversing a year-earlier loss of 37.09 billion yen. Revenue rose 3.8% to 1.661 trillion yen.

While keeping its annual sales forecast unchanged, Sony said it now expects a net profit of 60 billion yen for the year to March 31, 2011. In May, it had forecast an annual net profit of 50 billion yen.

"This is surprisingly good news for investors," said Mizuho Investor Securities analyst Nobuo Kurahashi. "Sony's forecasts in May disappointed many investors, but this revision shows that the company was being very cautious, perhaps overly cautious."

The improvement was most evident at the Consumer, Professional & Devices division, which is home to products such as liquid-crystal-display TV sets, Blu-ray video players and digital cameras. The home-electronics arm posted a profit of 50.1 billion yen in the quarter versus a loss of 8.9 billion yen a year earlier."
 
According to the report (which I read on Sony's investor relations website) the improvement in the Consumer Products division was due largely to increased sales of TV's and gaming consoles. It was silent regarding sales of digital cameras.

Consumer Products is Sony's largest division (in terms of revenue) based on the report, with all sorts of subdivisions (e.g., televisions, gaming, cameras, etc.). While the improved overall performance is certainly good news for Sony, we really don't know how well (or poorly) the camera division performed, and within that division Alpha cameras.

So, folks should not read too much into this quarterly report. The annual report for FY 2010 (ended March 2010) contained no information on sales performance of Alpha cameras (unlike prior years when market share increased were reported).

--
Mark Van Bergh
http://www.markvanbergh.com
 
Not really, the following is what it says:

The most significant factor was an earnings rebound in the critical consumer, professional and devices division, which produces core electronics products such as LCD televisions, Blu-ray video players and digital cameras. The division posted a Y50.1 billion profit in the quarter, versus a Y8.9 billion loss a year earlier.
 
Sony's sales figures are shooting up (Japan only figures), led by the nex-5:



 
Not really, the following is what it says:

The most significant factor was an earnings rebound in the critical consumer, professional and devices division, which produces core electronics products such as LCD televisions, Blu-ray video players and digital cameras. The division posted a Y50.1 billion profit in the quarter, versus a Y8.9 billion loss a year earlier.
Sounds like exactly what Mark said. The division that includes cameras did well as a whole; whether cameras did well is not specified.
  • Dennis
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Gallery at http://kingofthebeasts.smugmug.com
 
Not really, the following is what it says:

The most significant factor was an earnings rebound in the critical consumer, professional and devices division, which produces core electronics products such as LCD televisions, Blu-ray video players and digital cameras. The division posted a Y50.1 billion profit in the quarter, versus a Y8.9 billion loss a year earlier.
Sounds like exactly what Mark said. The division that includes cameras did well as a whole; whether cameras did well is not specified.
Agreed, the lower cost and higher adoption of blu-ray players and the release of the PS3 slim was most likely the largest chunk of that raise in revenue.
 
As mentioned there is nothing that indicates how DSLRs are performing. First you don't even know how DSLRs are tracked - if they're considered part of "digital cameras". And even if they are you cannot make a determination as to how successful DSLRs are. If you think for a minute Sony cares about photographers so much they'll continue investing $$ in something that doesn't have a strong profit margin - forget it. Remember, with a large multi-faceted corporation it isn't even enough for an area to make a profit. It is also a matter of whether the executives believe another area could be even more profitable if it had the money going into DSLRs or full frame cameras.

Now, I'm not saying things are bad. Just that there isn't enough information available to guess whether Sony's DSLRs are doing well - and, more specifically given recent rumors - whether their full frame DSLRs are doing well enough to warrant continued investment. Those figures will never really be public knowledge. The best we can do is wait for world wide sales figures (not just Japan) to be compared in the DSLR realm. Or wait to see what new bodies are released.
 
Not really, the following is what it says:

The most significant factor was an earnings rebound in the critical consumer, professional and devices division, which produces core electronics products such as LCD televisions, Blu-ray video players and digital cameras. The division posted a Y50.1 billion profit in the quarter, versus a Y8.9 billion loss a year earlier.
---------------------------------------
Right, but nowhere did it say anything about sales of digital cameras, and attributed the gains, or most of them, to better TV and gaming sales.

--
Mark Van Bergh
http://www.markvanbergh.com
 
As mentioned there is nothing that indicates how DSLRs are performing. First you don't even know how DSLRs are tracked - if they're considered part of "digital cameras". And even if they are you cannot make a determination as to how successful DSLRs are. If you think for a minute Sony cares about photographers so much they'll continue investing $$ in something that doesn't have a strong profit margin - forget it. Remember, with a large multi-faceted corporation it isn't even enough for an area to make a profit. It is also a matter of whether the executives believe another area could be even more profitable if it had the money going into DSLRs or full frame cameras.

Now, I'm not saying things are bad. Just that there isn't enough information available to guess whether Sony's DSLRs are doing well - and, more specifically given recent rumors - whether their full frame DSLRs are doing well enough to warrant continued investment. Those figures will never really be public knowledge. The best we can do is wait for world wide sales figures (not just Japan) to be compared in the DSLR realm. Or wait to see what new bodies are released.
I generally agree with the above but want to point out that gauging Sony's success in FF cameras by sales today is not completely fair, as the relevant models (A900/850) have been on the market for a while. Generally speaking, the longer a product is on the market its sales tend to decline (with some exceptions like the Nikon D90 which remains a top seller, at least in Japan).

Sony really has no current (new) products for higher-level users, having discontinued the A700 (now three years old) with no replacement, and having the two-year old A900 and the A850, which while only about a year old is virtually identical to the A900 except in shooting speed, and thus is two-year old technology. But, it's even worse, as the A900 is a "sister" camera to the A700 in virtually all its operating systems except for the larger sensor and a slightly modified AF module, so one could argue they A900/850 really are at least three-year old technology.

Then you have some of Sony's entry level cameras, like the new A290/390, which really are warmed over replacements of the 230/330/380, which were warmed over replacements of the 200/300/350 with much worse body designs. As the review of the A390 on this site points out, it has basically the same image quality and features as the A350 from two camera generations ago. Thus, old technology that has not been improved.

It appears that Sony is on the verge of coming out with a slew of new products, the first of which were the NEX cameras. Hopefully these new products will offer improved functionality, features and performance and will be far more attractive products to consumers. Hopefully at least one of those cameras will be the A7xx (I would not expect an A900 replacement until next year some time, assuming it comes).

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Mark Van Bergh
http://www.markvanbergh.com
 
that the A900/A850 did not do well / as well as expected even not in the year they came to market.

perhaps the NEX 3/5 are doing ok saleswise on this moment, but i guess we need to talk about more then only the NEX.

i dont think the Digital camere division is what is making the boost.....its just a small drip.
--
All my Post Processing is done with Capture NX2

http://www.flickr.com/photos/marti58/
 
well it say's all this is not where the climbing up lies.
..that the NEX was for sale less than a month during the sales period shown in that table? Meaning, the actual market share during those weeks was many times the percentage shown.
 
well it say's all this is not where the climbing up lies.
..that the NEX was for sale less than a month during the sales period shown in that table? Meaning, the actual market share during those weeks was many times the percentage shown.
yes, during the whole Jun (of which 19 days sales for NEX series)

the NEX series grabbed 16% market share in BCNRankings, better than m43 combined.
 
Sony has done well on sales of TV’s, PS3’s & Vaio’s but camera & AV sales were weak.

Here’s Sony’s published results:
http://www.sony.net/SonyInfo/IR/financial/fr/10q1_sony.pdf

The Consumer, Professional & Devices division sales picked up by 8.9% in value compared to last year but the Digital Imaging product line actually fell 4.5%. Digital Imaging sales represent 20.7% of the division’s income, 2nd by value to Televisions (PS3 & Vaio are a sparate division). See page F-5 (16th page in document).

(Digital Imaging includes digital still cameras, digital interchangeable lens cameras and digital video cameras but not “broadcast- and professional-use products”.)

Still some work to do to turn around the DI line and presumably the new products coming out are aimed at doing this. I’m sure Sony are happy to be in the black overall but you would expect there is still some pressure on DI to perform.

Professional Solutions isn’t going too badly – up 11.1% - so there may be some R&D going on there that might eventually spin off to DI.
 
Which is fine, you just might to have a look at some of the comments in the other thread on the same issues.
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Mike Fewster
Adelaide Australia
 
What clear from this table is that advanced amateur models are very popular: D90 has a incredible market share of 11.5%. I might be repeating myself and that is that Sony really lacks a camera in this segment. The A550 really is not stacking up against the D90. The A7xx might be a pitched a bit too high (at least in price), what Sony needs is an A6xx.
 

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