While Sony has seen rough times in the past years, income reports from 2012 show that the electronics giant is finally turning things around. From 2011 to 2012, the company has increased fourth-quarter revenue by 6.9 percent, slowing losses down to only a fraction of 2011 numbers, while showing analysts it is ready to rise again.
The recent decade has not been kind to the Japanese tech monolith. The turbulent Japanese economy has offered market challenges. The tsunami ruined plants and forced company restructuring. Some of its departments, such as the television division, have come under widespread criticism by investors for being unwieldy, unprofitable burdens.
Fortunately, Sony appears to be pulling itself out of the mire in spite of its losses. Mobile products and communications shot up by a surprising 94.4 percent between the fourth quarters of 2011 and 2012, showing the vast amount of interest in tablets and mobile services, especially in the Asia-Pacific sector, where consumers are hesitant to purchase Apple products because of inherently high prices. Sony Pictures and Sony’s financial services work also saw revenue increases when comparing fourth quarters.
The traditional competencies of the electronics company did not do nearly as well. The game division dropped by 15 percent in this period, due to a nearly obsolete console and gaming interest lost to tablets. The home entertainment and sound business fell by 18 percent.
The signs point to Sony emerging as an entirely new type of company, a more flexible mobile beast with strong interest in appealing to the commercial sector with software solutions instead of hardware. However, it is unlikely Sony will undergo a complete transformation just yet. The company is planning on unveiling a new gaming console early this year, a move expected to stoke interest and rescue the floundering gaming division before it becomes a liability. The business faces gaming competition from Microsoft, Nintendo and, more recently, Apple.
Noting its success with the mobile crowd, Sony will also tap additional markets through new tablet projects. For example, the business will move into online learning with a K-12 education program based on its Xperia Tablet S, which the company is offering at a discount for educators in combination with its Sony Education Ambassador community, designed as a teacher-based social network.
Sony is expected to release additional reports showing total net profit for 2012.
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