Sony To Discontinue CRT Manufacture!?!

Discussion in 'Displays' started by Paul M.Kuziel, Oct 21, 2003.

  1. Paul M.Kuziel

    Sep 12, 2003
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  2. Jack Briggs

    Jack Briggs Executive Producer

    Jun 3, 1999
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    At least insofar as the Japanese consumer market is concerned. The news brief makes no mention of Sony's export products. Bear in mind that not only does Sony manufacture its own CRTs, but it makes the glass for the tubes as well.
  3. Paul.S

    Paul.S Producer

    Mar 29, 2000
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    Hollywood, California
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    Yeah, this is one part of the broad restructuring/reorganization plan referred to in the article. The writing has arguably been on the wall for a while but that does not make some of the manufacturing elements of this realignment any less remarkable . . . and a little sad.

    More details from an FT Investor story today:

    FT Investor
    October 28, 2003
    Copyright 2003 Financial Times Information
    Copyright 2003 FT Investor


    Sony on Tuesday announced a long-awaited restructuring plan aimed at slashing cost, boosting profitability and placing it firmly on the offensive in the emerging world of networked consumer electronics.

    The 3-year restructuring plan boosts optimism that Sony is finally taking the necessary steps to get its core consumer electronics business back on an expansionary track. The group's lacklustre performance in the key sector had resulted in a sharp drop in its operating profit margins to about 2.5 per cent and concerns about Sony's growth prospects had led to a slump in its share price.

    The programme is broadly divided into measures designed to reduce costs and those aimed at positioning the group for future growth.

    The cost-cutting initiative, which aims to reduce fixed costs by Y330bn over 3 years, will allow the consumer electronics and entertainment group to achieve its target of generating 10 per cent operating margins by March, 2006 even if sales of its electronics division, now at Y4,940bn, remain flat, according to Nobuyuki Idei, chief executive.

    The measures include a 13 per cent reduction of its global workforce, or 20,000 out of 154,500. Of that number, 7,000 will be in Japan.

    Sony will outsource more production of mature products and consolidate its global operations to achieve a 30 per cent reduction in the number of production, distribution and service points. The number of production lines of cathode-ray tube TVs, the Trinitron TVs, which made Sony a pre-eminent consumer brand, will be reduced from 17 to 5 by the end of fiscal 2006. CRT production in Japan will be terminated by the end of next March.

    The number of registered parts Sony uses will be reduced to 100,000 from 840,000 and supplier numbers will be reduced to 1,000 from 4,700 by the end of March, 2006.

    Measures to support its future growth include a focus of resources on growth products, including flat panel TVs and DVD recorders.
    [bold mine] It will also integrate its diverse electronics businesses, developing more products that integrate consumer electronics functions and games technologies.

    "What is being developed for the PlayStation 3 goes beyond the boundaries of games," said Mr. Idei.

    Sony is creating a new semiconductor company to integrate its semiconductor operations, and a holding company for its financial services business, which it aims to take public around April, 2006.

    The group also confirmed that it was setting up a liquid crystal displayer joint venture with Samsung of South Korea. The $2bn facility will have a monthly capacity of tens of thousands units by mid-2005. [bold mine]

    Mr. Idei said he did not think there was a need currently to reorganise the movies, music and games businesses in the US. He said that while Sony was considering various options regarding consolidation in these industries, particularly the music sector, there were no specific developments yet.

  4. Bill Will

    Bill Will Screenwriter

    Dec 26, 2001
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    From what I've read Samsung is kicking the hell out of everyone & maybe if Sony would lower their prices to compete in the market place instead of charging top dollar for most things they would'nt be in such bad shape.
  5. david stark

    david stark Second Unit

    Jan 24, 2003
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    After buying a tv a few weeks ago (a widescreen HDTV CRT tube tv) I can see why sony is up the creek. It's new TV's are about twice as much as the competition (samsung, toshiba). The quality may be marginally better, but not much. Certainly at that price I think there are better sets on the market.
  6. BenK

    BenK Stunt Coordinator

    Aug 27, 2002
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    With so my choices of lower priced comparable or better tvs and electronics nowadays Sony doesnt have that "edge" they had years ago. I can see why they're in the situation they're in.

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