Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home CRM Systems Customer Service Contact Centers Business Intelligence More Topics...
UCS Invicta: Integrated Flash
Deploy flash memory technology to
deliver peak workload performance.

Find out more>>
Computing
Gartner's #1 for endpoint backup
Average Rating:
Rate this article:  
Sony Exits PC Business with Sale of Vaio Division

Sony Exits PC Business with Sale of Vaio Division
By Barry Levine

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

The focus by Sony will now be on mobile, including tablets as well as smartphones, with its last Vaio PCs being offered this spring. In the announcement of its Vaio PC spinoff, Sony said its three core businesses are now imaging, games and mobile. In its most recent financial period, Sony reported a "significant increase" in smartphone sales.
 

Related Topics

Vaio
Sony
PC
Restructuring



Sony is getting out of PCs. The technology firm announced Thursday it would sell its once-promising Vaio PC brand to a Japanese investment firm.

The firm, Japan Industrial Partners, will set up another company to make and sell the Vaio PC to consumer and business users, but only in Japan for now. The financial terms of the deal were not made public, although some news reports suggest the deal is worth as much as $494 million. Sony will have a 5 percent ownership of the new Vaio company.

Sony will also spin off its TV unit as a wholly owned subsidiary to focus on the 4K Ultra High Definition TV market that could prove promising, although currently 4K sets are very expensive. Sony President and CEO Kazuo Hirai has told news media that "the 4K market segment is expected to grow," with the TV subsidiary better positioned to respond quickly to market conditions. Sony's smartphones are handled by Sony Mobile Communications, and its PlayStation video game consoles by Sony Computer Entertainment, both of which are wholly owned subsidiaries.

5,000 Jobs

The Vaio brand, launched in 1996, attempted to set a new standard for multimedia computers -- Vaio reportedly came from the acronym for Video Audio Integrated Operation -- but the PC unit has been unprofitable in recent years. Several hundred PC-related employees at Sony will move to the new company, and existing PC customers will continue to receive after-care customer services for an unspecified amount of time.

Overall, Sony will reduce its workforce by 5,000 positions by March of next year because of this restructuring, in addition to reducing costs at its headquarters by nearly a third. The company has a total workforce of 145,000.

On the devices front, Sony will focus now on mobile, including tablets as well as smartphones, with its last Vaio PCs being offered this spring. In the announcement of its PC spinoff, Sony said its three core businesses are now imaging, games and mobile. In its most recent financial period, the company reported a "significant increase" in smartphone sales and in operating income from its game division.

'Certain Cachet'

According to industry research firm Gartner, Sony's share of the shrinking PC market had been 1.9 percent worldwide last year, decreasing from 2.1 percent in 2012.

Sony's restructuring comes as the company faces an expected loss of about $1.1 billion for the year ending in March. This is the fourth major restructuring the company has undergone since 2005.

Charles King, an analyst with industry research firm Pund-IT, told us he is "not surprised" at Sony's move. He recalled the "Vaio name had a certain cachet in the '90s, but there's been a rise in style and product quality in the last five years that has whittled that away."
 

Tell Us What You Think
Comment:

Name:

NoAcerPlease:

Posted: 2014-02-08 @ 9:08pm PT
Sad day! When I compared and bought an ultrabook based on Intel's 4th generation ULV Core, the SONY Vaio Pro was easily much better than the MacBook AIR or the other stuff that Acer (Bad build quality) and Samsung (dream specs never showed in the show room) had to offer. Let's hope Vaio comes back to North America soon



UCS Invicta: Integrated Flash Why wait for the future? Unlock the potential of your applications and create new business opportunities today with UCS Invicta Series Solid State Systems. Take advantage of the power of flash technology. See how it can help accelerate IT, eliminate data center bottlenecks, and deliver the peak application performance and predictability your users demand. Click here to learn more.


 Computing
1.   UPS Stores Hit by Data Breach
2.   Acer Desktop Box Rides Chrome Wave
3.   VMware Buys CloudVolumes' V-Apps
4.   Feds OK IBM-Lenovo x86 Server Deal
5.   Target Data Breach Cost: $148 Million


advertisement
China Puts Microsoft Under the Lens
Official anti-monopoly probe launched.
Average Rating:
Feds OK IBM-Lenovo x86 Server Deal
Makes Lenovo a player for data centers.
Average Rating:
Acer Desktop Box Rides Chrome Wave
Chromebox targets schools, small biz.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Find Malicious Android Apps Can Hack Gmail
A new study shows that a weakness in the Android mobile operating system can be used to steal sensitive, personal info from unwitting users. Gmail proved to be the easiest app to attack; Amazon, the hardest.
 
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Feds OK $2.3 Billion IBM-Lenovo x86 Server Deal
IBM and Lenovo are celebrating U.S. approval of their x86-based server deal, having cleared some major security hurdles. The deal makes Lenovo a major player for enterprise data centers.
 
Three New Lenovo PCs Aimed at Business Users
With businesses wanting computing solutions that do more for less money, Lenovo has unveiled three new desktop PCs that it says offer solid computing at a budget-minded price.
 

Mobile Technology Spotlight
Screen Shortage Briefly Puts Brakes on iPhone 6
RAM? Check. Antenna switch? Check. Screen? Oops. Parts suppliers for Apple have found themselves facing a shortage of screens for the new iPhone 6 as next month's release date for the new smartphone looms.
 
Bounty Offered to Coders for Oculus Rift Bugs
Coders who find bugs in software for the Oculus Rift VR immersive headset could receive a reward of at least $500 under Facebook's White Hat bounty program. Facebook acquired Oculus in March.
 
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Contact Centers | Business Intelligence | Sales & Marketing | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.