Sony Making a Strong Comeback

For a while there Sony was dwindling, but of late the company is making a strong comeback revive as an electrical giant, so comment electrical analysts. On September 17 last year, Sony reported no dividend for the first time in its history and its stock fell by 13% the following day.

A year passed, and the company's stock has now regained  by 60% or so, market cap at 3.9 billion yen and is now way ahead of Panasonic (3 billion). Long thought laggard, Sony is definitely back in the track.

Why such a strong comeback? According to a recent report from Nikkei Shimbun, there are good reasons. One, Sony has done well in transforming its business structure. They were after quantities in television, camera, PC et.c and its fixed cost couldn't tackle a fast changing market climate and its business aggravated. Now, Sony has a powerful locomotive in the image sensors sector, games, movies and music - the areas no other competitors can rival.

In image sensors, Sony is way ahead in global share, not only in smartphones but on-board cameras. Their products for US Apple this fall are all doing well.

Their games, too, are in good shape with PS4 in particular. There is a high-earning service of the recurring type in full swing. They plan to provide varieties of contents - movies and music, etc. and PS membership has already zoomed to 64 million.

In the areas Sony outperforms others, not much competition is anticipated and business fluctuations affect less. Vice President Kennichiro Yoshida foresees little impact of China's business setbacks. A spokesman of a foreign affiliated securities company views Sony as an electrical giant can anticipate sizable business gains in a sharp contrast to Mitsubishi Electrical, Hitachi and Sharp.

Sony is performing well in television and camera sectors, its operating profits in April-June term this year aggregating by 22 over the previous term in cameras alone.