Analysis: SONY TV is to catch up with the return to the throne of the long road

Foreign media recently published article said that for a long time in the past, SONY consumer electronics and home appliances has always been synonymous with high-end products, but in the process of new technology transformation, SONY has gradually been competitors to catch up, this point in the field of flat-panel TV is obvious. Keith Kaplan (Keith Kaplan) love his two SONY TV very much, one of which has accompanied him for more than and 10 years, and in good condition. But he did not choose to buy high-definition flat-panel TVs when SONY products, but chose a Panasonic plasma tv. He said: in the market, I did not find any of my favorite SONY TV, and finally I bought a $42 Panasonic plasma TV with $3500. Its picture quality is very good, the price is also good." In the process of transformation from CRT TV to cable TV, many competitors have narrowed the gap with SONY in product quality, even in some of the indicators in the lead, so SONY in the TV market monopoly advantage was eroded step by step. Many of SONY's loyal users began to choose other company's products, such examples are not uncommon Kaplan. Market research firm In-Stat analyst Michel Abram (Michelle Abraham) said: "SONY products often than other brands of high price, just because it is the product of SONY. However, the days when consumers are willing to pay high prices to buy SONY products are gone forever, because the quality of other brands is equally good. This is a big problem SONY must face." Market research firm Envisioneering released data show that SONY Trinitron TV once occupied 50% of the high-end TV market, the TV market accounted for 20% of the market share. 2004 fiscal year, SONY TV business sales of $8 billion 900 million, an increase of 3.4% over fiscal year 2003, the proportion of SONY's total revenue of $13%. In 2004, the total output value of the global TV market was $77 billion. Facing strong challenges from low-cost Asian rivals, SONY have not fared well, especially in the flat-panel TV market. In fact, SONY's first quarter of fiscal year 2005, with a significant decline in the performance of the TV business has a great relationship, SONY TV sales in the quarter fell by 21%. Sony Corp executives have been aware of the situation is difficult to change in the short term, because TV prices will decline this year than they expected. For this reason, SONY expects fiscal 2005 sales of $67 billion 800 million, less than the original expectations of $3%; net profit of $93 million 500 thousand, compared with the original expected to reduce by 88%. SONY chief financial officer Nobuyuki Oneda said in a quarterly earnings, various types of TV prices are showing a downward trend. Among them, the price of LCD TV this year in the European market will decline by 50% in the U.S. and Japanese markets will decline by 20% and 30%, respectively. Although SONY also lowered the price of the product, but in terms of price cuts can not be compared with some competitors. Some analysts said that SONY brand is still strong, but has gradually moved down the altar. SONY regression is the opportunity for the world's largest PC manufacturers DELL, DELL currently has started selling low-priced plasma and LCD TV in their own online shop. Since DELL direct sales business model, do not need to share profits with the dealer, so you can provide users with lower prices. Forrester research analyst Josh - Bonov (Josh Bernoff) said: "through years of research, we found that the elements of more and more users first consider when purchasing products is the price, rather than the brand." Users pay too much attention to the product price is very unfavorable for SONY, because SONY has no advantage in terms of price, the success of the company's magic is high quality. With the assimilation of TV accessories suppliers, it will be very difficult to stand out from the TV quality. Benov said: Although SONY is known for innovation, but to be unique in the field of big screen TV is not easy, because most of the TV accessories from the same suppliers, and product design is roughly the same." For example, SONY plasma TV accessories come from South Korea and Chinese suppliers, the application of technology is mostly generic technology. SONY executives said they have the confidence to return to consumer electronics and home appliances market throne. However, the current situation, to achieve this goal, SONY still has a long way to go.