Sony was once a force to be reckoned with but in the past few years we have seen their demise. They simply are not a world leader when compared with Samsung and Apple.
Sony are on the road of revival and they expect to quadruple their profits this year. They have cut down cost and have increased their camera sensors sales. They have had losses on TVs and mobile phones for years but now they are looking to turn things around for them.
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On Thursday Sony said that it is estimating that their operating profit will jump in the year ending March 2016. And it is estimated that they will earn 320 billion yen by March 2016. So this is the year for Sony as they will earn their biggest annual operating profit in seven years.
Some analysts believe that Sony will surpass their expectations and go on to earn as much as 408 billion yen by next year. If the Sony CEO Kazuo Hirai manages to pull one of Japan’s biggest companies out of loss, it would mark another milestone for Kazuo.
Kazuo Hirai has changed the direction of the company. Now Sony is targeting expansion in lucrative new areas such as sensors which are used in cameras. They are making camera sensors for Apple’s iPhones.
Some former executives believe that the company should focus on innovation rather than cutting costs. The Sony Chief Financial Officer Kenichiro Yoshida said that the company is coming out of losses but they are still recuperating.
He also said that in the past seven years, they have revised their earnings guidance downwards around 15 times. Sony has also said goodbye to PCs and its TV business. Sony is also looking to split its audio and video business.
By this way they are trying to hold subsidiaries more accountable for making profits. Investors are happy that Sony has cut losses and now their share price has risen more than 30 percent. Just after a year their stock price has doubled.
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