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Posted by Mr. X on 04/06/06 18:06
"asj" <kalim1998@yahoo.com> wrote in message
news:1144298270.166730.36610@v46g2000cwv.googlegroups.com...
> dude, get with the picture and the present, Sony earned $1.4 Billion in
> profit in the 4th quarter last year and had a healthy profit for the
> year after reversing earlier slides to cheaper rivals. and btw, most of
> those cheaper rivals like samsung are ALSO Blu-ray supporters.
>
> http://www.post-gazette.com/pg/06080/670885.stm
>
> "ts fortunes have improved dramatically after it started selling LCDs
> TVs developed and made under a joint venture with Samsung. Especially
> telling of Sony's brand power is that it is beating Samsung in global
> share of LCD TVs. Sony reported a $1.4 billion profit for the quarter
> ended Dec. 31, up 17.5 percent from the same period a year ago, as its
> LCD TVs sold briskly during Christmas."
Spin. They are not actually making the LCDs any more. They're all made in
Korea and China and Sony just slaps their name on them and uses their retail
distrabution networks. Now that you can get a 42" 1920x1080p Septre LCD for
$2K at Costco their profit margins from electronics will get even smaller.
Eventually, the Chinese will get even better distrabution networks and
people will find out that Sony doesn't make their LCD glass. Same with
their CDR drives. At one time they could charge a premium, but eventually
people found out they were made by Benq, so why pay 2x as much for the
"Sony" ?
Consider this:
http://finance.google.com/finance?q=sony&btnG=Search
Just how much more pricing pressure do you think this company:
Sony (M JPY 4Q05):
Return on Average Equity: 4.85%
Total Liabilities 6,628,762
Cash from Operating 124,262
****debt to operating cash: 53x
Can put on this company in DVD players:
Toshiba (M JPY 4Q05):
Return on Average Equity: 8.78%
Total Liabilities 4,012,441
Cash from Operating 298,589
****debt to operating cash 13.4x
While fighing this company in consoles:
Microsoft (M USD 4Q05):
Return on Average Equity: 28.56%
Total Current Liabilities 16,747
Cash from Operating 6,560
***debt to operating cash 2.6x
X
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