Sony Electronics Has Record Year With Sales Approaching $14 Billion

21-May-01

Despite a relatively soft holiday shopping season and the slowing U.S. economy, Sony Electronics (SEL) achieved record sales of nearly $14 billion for the fiscal year that ended on March 31, 2001, accounting for about 30 percent of Sony Corporation's global electronics sales of more than $44 billion. At an editorial roundtable in New York City, Fujio Nishida, SEL's President and COO, reported that U.S. sales were up about 15 percent from the prior year. He attributed the growth largely to strong sales of Sony's flat-screen FD TrinitronÆ WEGAÆ televisions, digital imaging products, including Cyber-ShotÆ and Digital MavicaÆ still cameras, as well as Mini DV and Digital 8Æ camcorders, and DVD-Video players - all categories where SEL has among the top market shares. And while other computer companies were experiencing setbacks, he said that Sony's growing line of VAIOÆ notebook PCs became one of the leading brands sold by U.S. retailers. Nishida said that gains, ranging from 25 to 40 percent, were realized by SEL's PCs and branded computer display monitors, digital imaging products, direct-view and rear-projection TV sets, home video products, led by DVD-Video players, ""home theatre in a box"" and other systems, and mobile electronics products, triggered by XplodÆ car stereo and speaker systems. Additional double-digit growth occurred in SEL's personal audio business, where a resurgence of MiniDisc digital audio product sales occurred due to the inclusion of the PC link capability. Sony's U.S. recording media and component business also saw a double-digit gain, with the semiconductor business leading the way, followed by CD-RW computer storage drives and OEM (original equipment maker) display monitors. Nishida also used the occasion to explain how Sony is in the process of ""a global transformation toward becoming a personal broadband network solutions company that offers hardware, software, content and services through an always-on, ubiquitous network."" He said that a ""ubiquitous network"" provides multiple content choices in the form of text, images, music and/or video, includes multiple distribution channels, such as telephony, cable, satellite, over-the-air and wireless transmission, and can be accessed through ""digital gateways,"" like digital televisions with advanced set-top-boxes, broadband PCs, such mobile devices as wireless phones and handheld PDAs, and next generation game consoles. ""Our aim is to ultimately have all of Sony's hardware devices network-enabled in the broadband world,"" Nishida said. For the current year, some of SEL's key product initiatives include recent introductions of the sleek VAIO R505 notebook and VAIO Slimtopô pen tablet PC, along with higher resolution CD Mavica cameras, flexible dual-media cameras (with both floppy disk and Memory StickÆ media), and compact Cyber-Shot cameras. He also pointed to the new CLI?ô handheld that Sony announced last week with its high-resolution color screen and ATRAC3 and MP3 playback capability. As for high definition television, Nishida affirmed SEL's intention to introduce three new sets this fall, including a 34-inch direct-view WEGA model, as well as 57-inch and 65-inch rear projection sets. The new sets will be ""fully integrated"" with HDTV decoders and tuners built-in for over the air reception, along with i.LINKÆ IEEE 1394 digital interface ports so high definition signals can be passed through to the sets from compatible set-top-boxes. In addition, Sony will be making more of its large-screen, direct-view and rear-projection sets capable of receiving high definition programming via sources like satellite receivers and set-top-boxes that have compatible decoders and tuners built into them. According to Nishida, Sony will reinforce its commitment to multichannel Super Audio CD (a high resolution audio format) by including playback capability in an expanded line of standalone single and multi-disc SACD players, combination (with SACD) DVD-Video players, and sleek all-in-one DVD Dreamô Systems. Software support from Sony Music Entertainment and other labels is also expected to broaden throughout the year. With regard to personal audio, Sony's charged-up WalkmanÆ line will extend to models based on the new MiniDisc Long Play (MDLP) capability for recording more than five hours of music on a single disc, variations of the virtually skip-free CD Walkman, and PC-compatible Network Walkman products. In terms of new services, Nishida said that later this year the company will be introducing a receiver compatible with XM Satellite Radioô service, along with voice recorders that will offer audio content like newspapers and books from Audible.com. Not to be outdone, SEL's broadcast and professional business will be introducing a ""Print By Sony"" campaign that will encompass in-store digital photo finishing systems and even Sony branded paper, leveraging the company's number one position in the consumer market for digital cameras. And motion picture fans can look forward to George Lucas' upcoming ìStar Wars: Episode II,î shot exclusively with digital video using Sony's CineAltaô 24p (progressive) frame high definition cameras.For more information, visit www.sel.sony.com.

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