Sony quits the PC business to focus on mobile

[geeteam]

Confirming reports from earlier in the week, Sony has announced plans to sell off its VAIO computer division to a Japanese investment fund. Japan Industrial Partners (JIP) will take control of the operation for an undisclosed fee, and Sony will "cease planning, design and development of PC products." For a variety of reasons "including the drastic changes in the global PC industry," Sony says "the optimal solution is to concentrate its mobile product lineup on smartphones and tablets and to transfer its PC business to a new company."

The deal is expected to be completed by the end of July, and JIP's new company will initially focus on selling VAIO-branded computers in Japan; it plans to hire between 250 and 300 Sony employees for the venture. Sony is investing 5 percent of the new company's capital.

VAIO, a brand which has variously stood for Video Audio Integrated Operation and Visual Audio Intelligent Organizer, was introduced in 1996 with the PCV desktop line. Sony has expanded it through the years to encompass wild designs like the tiny VAIO P and entries in the ill-fated UMPC category, as well as more recent products like the VAIO Pro ultrabook and VAIO Tap hybrid.

Although the unit had been losing money amid a wider slump in the PC market, VAIO has always been associated with high-end design, and the line counted Steve Jobs among its admirers. A major manufacturer selling off its Windows PC business the week of Satya Nadella's unveiling as Microsoft CEO serves as a worrying indictment of the industry's health.

Source

[anuseems]

Just days after it was reported that Sony might sell their Vaio PC division, the company has gone ahead and made the deal official. Sony will sell their entire PC division to Japan Industrial Partners for an undisclosed amount, and immediately cease the design and development of any further PC products.

Sony cites "drastic changes in the global PC industry" as a reason for the sale of their Vaio business, and will now concentrate efforts on their smartphone and tablets lines. As for JIP, the new company will initially focus on the Japanese market while "evaluating possible further geographic expansion".

As well as selling off the PC business, Sony announced that their TV division will be split out into a wholly-owned subsidiary. The move will help "transform this business into a more efficient and dynamic organization" as Sony looks to turn a profit from TVs in their 2014 fiscal year (ending March 31, 2015).

The newly-split TV business will focus on high-end models, in particular their 4K range which is already a market leader in Japan and the United States. 2K models will still be sold, with the new business looking to improve both color quality and features in new products.

As part of the major restructuring at Sony, the company will be laying off 5,000 staff globally: 1,500 in their home nation of Japan, as well as 3,500 overseas. 250 to 300 Sony employees will transfer to JIP as part of the Vaio division sale, but exact layoffs from both the PC and TV divisions remains unknown.

http://www.sony.net/SonyInfo/News/Press/201402/14-019E/

Edited February 6, 2014 by anuseems