Sony is seen to be declining compared to its competitor Panasonic.
In Tokyo trading, Sony fell a whooping 8.6 percent which is the most since November 2013. The company recently projected a loss of $2.1 billion for the year 2014 due to declining sales in smartphones. For the first time since their initial public offering in 1958, the company will not be paying an annual dividend. Per rating agency Standard and Poor, they might cut Sony's corporate credit rating to below investment grade. Rating agencies Moody and Fitch have already rated Sony as below investment grade.
Sony is a Japanese multinational conglomerate corporation. The company has businesses in various sectors including electronics, games, entertainment and financial services. Sony is known as one of the leading manufacturers of electronic products for consumer markets.
Sony is now taking steps to change their business model. They are trying to focus on the entertainment and game business as consumer demand for TVs, smartphones and cameras have significantly declined.
Two years ago, the market leaders for the world of consumer electronics were Sony and Panasonic.
Panasonic had also faced a similar situation in 2012 as the company recorded its largest annual loss. For the first time since their public offering in 1950, Panasonic cancelled their dividend payouts. Then came the decision to hold production of their plasma TVs cut their mobile handset sales in Europe.
Since Panasonic have undertaken steps on improving its technology and developing new businesses, the company's shares rose 73 percent since April 2012. Panasonic President Kazuhiro Tsuga pushed for innovation and change, such as going in battery production with Tesla Motors Inc. Panasonic also cut back on their smartphones, televisions and circuit boards.
Panasonic Corporation, formerly Matsushita Electric Industrial Co., Ltd., is a Japanese multinational electronics corporation. It is one of the largest producers of electronic products. Their known competitors in the market are Sony, Toshiba, Hitachi and Canon Inc. In 2012, Panasonic was the world's fourth largest television manufacturer.
