TOKYO/SEOUL (Reuters) - Shares of Sony Corp fell to their lowest in nearly four months on Friday after the electronics maker's new business strategy failed to convince investors it could deliver strong profit growth.
Sony, which is heading for its second straight annual loss, said on Thursday it would launch 3D TVs and networked products and services as part of a plan to boost its operating profit margin to 5 percent in the year to March 2013.
The 5 percent target had originally been set by CEO Howard Stringer in 2005 for the business year to March 2008. It narrowly missed the target that year before falling into the red on the economic slowdown and tough competition.
Market players remain sceptical whether Sony can achieve its goal of turning its video game and TV operations profitable next year as it struggles to compete with overseas rivals such as South Korea's Samsung Electronics Co Ltd.
"The strong yen makes it difficult for the Japanese to compete on prices, while the Korean's strength in volume and mass production technologies keeps them ahead," said John Park, an analyst at Daishin Securities in Seoul.
"Japanese TV makers like Sony will try hard to expand in LED-backlit TVs next year, but are likely to have an uphill battle with Korean leaders," he said.
Sony's TV business is in its sixth-consecutive year of losses as it grapples with a firmer yen and intensified competition from Samsung and LG Electronics Inc
Shares in Sony were down 2.8 percent at 2,400 yen after earlier hitting 2,375 yen, their lowest since July 29. The benchmark Nikkei average was down 1.3 percent.
The maker of Cyber-shot cameras and PlayStation games shed jobs, closed plants and sold non-core assets following the global downturn to cut costs, and investors were awaiting a convincing growth strategy from management ahead of Thursday's announcement.
Source:
http://in.reuters.com/article/technologyNews/idINIndia-44104820091120
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