Sony restructures TV division to arrest losses

Sony is set to split its television arm into three divisions in a bid to turnaround the loss making business.


The separate three units will be: LCD TVs, outsourcing and “next generation TVs” as it bids to match its biggest rivals Samsung and budget manufacturer Vizio.

Sony spokeswoman Ayano Iguchi told Reuters that the restructure will clarify the “mission” and “responsibilities” for the three separate sides to the TV business.

Sony’s TV operation is expected to report a loss for the eighth year in a row, when it announces its full year financials tomorrow (2 November). Chief executive officer Howard Stringer has said previously that TVs are vital to Sony’s sales of related products, such as its PlayStation consoles and Blu-ray players.

The company suffered a blow earlier this month after it was found that up to 1.6 million Sony Bravia TV sets produced since 2007 had a faulty component that could cause them to melt, although the company has not yet issued a full recall.

Some shareholders have even called on Sony to sell the TV division altogether, in a move similar to Philips, which hived off its loss-making TV in April.

The company is also reported to be looking to sell off its stake in its liquid crystal display joint venture S-LCD to Samsung, although Sony has declined to comment on the move.

Sony did not respond to a request for comment about how marketing will be affected by the TV restructure in time for publication.

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