Thursday, February 6, 2014

Sony dumps its PC business

Japanese technology company, Sony has announced it will be selling its Vaio PC business to  for the sum of $490 million. It also added that this will see 5,000 workers lose their jobs by the end of its fiscal year in March, 2015.

It was confirmed today after some rumours that the Japanese company was thinking of selling its PC business as a result of low performance. Sony also announced that its TV business will become a standalone business after the sale of its PC business.
vaio
Vaio. Image: the verge
Initially, Sony Vaio PC business is not one of the top five in the world despite its various innovations in its devices. Many have nailed this to the fact that Sony has not been able to compete with other popular PC vendors like Lenovo, HP, Acer etc. in the low end category of PC sales.
Add this to the fact that PC market suffered a 10% reduction in sales in 2013 and you get a good picture of where Sony Vaio might be. It is expected that this deal will be completed by July this year.
Not all workers in the PC business will be laid off though, the new owner wants to hire between 250 and 500 of Sony’s employees in the PC business.
Due to woeful performance in 2013 in which the company will announce a loss of $1.1 billion despite forecasting a profit of $300 million, it is being speculated that the company is now ready to focus majorly on digital imaging, gaming, and its mobile categories.
This is coming two days after Microsoft, the maker of the major operating systems in PC (Windows) announced its new CEO.

Source: Sony
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