Sony Quarterly Profit Dips

By Cindy Waxer February 03, 2011

Blame it on a strong yen and plummeting TV prices: Sony is reporting that its quarterly profit dropped 8.6 percent. The Tokyo-based electronics giant earned 72.33 billion yen ($886.4 million) in profit for the October-December quarter, down from 79.17 billion yen the year before. Quarterly sales dropped 1.4 percent to 2.206 trillion yen ($27 billion). And Sony lost about 13 billion yen ($159 million) in its TV division.

What’s more, Sony is predicting a full year operating profit of 200 billion yen, lower than a consensus estimate of 212.9 billion yen in a poll of 24 analysts by Thomson Reuters I/B/E/S.

Last month, TechZone360.com reported on Sony’s eagerness to come in second place – behind Apple – in number of tablet computers sold by next year. But it’s already 2011 and Sony seems on a slow pace given that it did not introduce a tablet at this year’s Consumer Electronics Show, now underway in Las Vegas. Other technology companies have or will soon jump into the tablet race with rival Apple.

Reuters is reporting that Sony CEO Howard Stringer said that Sony wants to differentiate itself among its competitors – and that that may mean its tablet will be released later. For example, he said Sony is considering whether its forthcoming tablet should have 3D, according to Reuters.

At least one industry analyst said Sony turning into second-biggest maker of tablets by next year is a “difficult” goal, according to a report from Reuters.

"It would be extremely difficult to come up with products that are different from the others and to steal market share from the far-and-away front-runner, Apple," T.I.W. senior analyst Takao Hattori told Reuters in an interview. "To attract consumers, Sony would have to come up with features that are totally unexpected.”

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Edited by Tammy Wolf

TechZone360 Contributing Editor

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