[Medium FormatPro]

http://www.sony.net/SonyInfo/IR/financial/fr/12q1_sony.pdf

Especially not looking good for devices; which includes sensors.


Many in Sony still unloading their stock options and privately state that the company not looking good to be kept as is. Even so far as stating; whom would ever buy the camera imaging chips (portion of the company if divided up) if they have that much of a prolonged track record.

[JHD]

Are you worried?

[Medium FormatPro]

It is to my understanding that Sony is probably the second or third largest photo chip manufacturer in the world. Not if, but when the Sony is divided up; this will be the largest change in the digital camera world that has ever occured.

Also is anyone aware of how many items of Sony tech are actually in Pentax products??

[aurele]

Sony is not well because some of the division that previoulsy gave them lot of money (home entertainment to name it - TV / DVD player / etc - and music) are not going well.

they are no more sector that create a lot of value (LCD TV are cheap now, and so a little profit is only possible for biggest player).

On the contrary, imaging and chips are going super well so far.

Sony will sell the less profitable part i guess.

[JHD]

Technology will continue to march forward regardless who falls by the wayside or remains to see another day.

[Christine Tham]

Not quite sure about the doom and gloom. The Imaging Products and Division has healthy revenue and made a good profit (18.6 billion yen). Most of the losses are from the Home Entertainment and Sound division.

From the report:

In Sony’s digital imaging business, the market for compact digital cameras is shrinking as the market for
smartphones with camera functions grows, having an impact on Sony’s results for the current quarter. Sony
endeavors to strengthen its high value-added line-up of compact digital cameras and interchangeable single lens
cameras that are enjoying increased sales, Sony is working toward further profit contribution by focusing on the
expansion of sales.

Sophisticated technologies like image sensors, signal processors, and lenses support the digital imaging business
from a technology perspective. The image sensor business not only contributed to differentiation of Sony’s
products in the current quarter but it also contributed to profit through external sales. In order to solidify Sony’s
position in the market, in June 2012, the company decided to make an additional capital expenditure to increase
production capacity with the aim of further increasing profit. This investment will be used to expand production
capacity of stacked CMOS image sensors, which are more compact and functional, and will enable Sony to meet
the increasing demand for high resolution image sensors in the market for mobile devices such as digital cameras,
smartphones and tablets.

Given this is a photography forum, I am assuming we are primarily interested in Sony sensors and cameras. Looks like good news ahead - Sony is basically saying they are continuing to release products to try and get even more sales, and in addition increasing investment in stacked sensor production.

I think Sony's days as a home A&V giant are definitely waning. They don't even make high end audio products anymore - I remember buying a high end SACD player from Sony over ten years ago for over $4000, and those were the days Sony actually cared about the high end - beautiful engineering, top quality components, fantastic sound. These days their Bluray players are flimsy as (although I admit, I did buy a Sony bluray player recently for the kitchen - mainly because of it's Internet video streaming capabilities).

As for "unloading stock options" - LOL I had to laugh at that (sorry, I used to do option pricing and risk management for a living). Stock options issued by a company are usually vested for 3-5 years. Stock options reaching the end of their vesting period around now will be intrinsically worthless - because the strike prices would have been set before the GFC. This is true for just about any company in the world, not just Sony, due to the global downturn in the stock market.

[pinholecam]

Even if Sony stops sensor production, the good thing about buying sensors is that you just got to find a new seller.

I'd be more worried if Pentax made their own sensors and it drained them to upkeep it.


Anyway, at worst its spin off.
Floating off in the stock exchange, Private Equity, Governments (eg. China; UAE), being the usual suspects.

[Laurentiu Cristofor]

Are you worried?

I would be worried if MFP would stop worrying about the future of companies whose products he doesn't have any interest in.

[Medium FormatPro]

I own three Sony cameras; including an A900 and well over 10k in Sony lens'.

It's interesting that Sony builds a number of cameras (five) that Pentax can't even touch with anything besides one medium format body.

[Laurentiu Cristofor]

I own three Sony cameras; including an A900 and well over 10k in Sony lens'.

My bad then. I would not worry about Sony though. Looking at the worst case, even Pentax found a home - why would Sony's camera division be unable to?

[tsammyc]

I guess nobody read the details in the results announcement

".....by a significant increase in sales of image sensors reflecting higher demand."

Devices division income increased by 200% The sensor business is doing amazingly well.

[philbaum]

Since Sony made an additional investment, per Christine's quote, in chip production as recently as June 2012, one would think that particular division is doing quite well.

But MFP has every right to be concerned. Some changes are needed at Sony, and from the outside, they seem unable to take the needed actions to keep the ship afloat. So anything that rocks Sony, could credibly affect management or ownership of the imaging sensor division. Therefore sensor sales policies could change.

On the other hand, there's nothing we can do as consumers to affect or influence the decisions on the imaging division, so why worry. Somehow, sensors will continue to be made by a variety of companies.

[Rupert]

My money is on Samsung picking up the pieces of the company they had the most ill effect on. Samsung has the deep pockets and the desire to dominate. None of the others are in that position currently. Not a bad event if it happens, they are innovators and movers and shakers....it could lead to a better line of products for all of us.

Regards!

[philbaum]

My money is on Samsung picking up the pieces of the company they had the most ill effect on. Samsung has the deep pockets and the desire to dominate. None of the others are in that position currently. Not a bad event if it happens, they are innovators and movers and shakers....it could lead to a better line of products for all of us.

Regards!

That's an interesting and credible prediction. But behind closed doors, i don't think the Japanese will sell off a leading technology area like that to a foreign country, especially a company like Samsung who is already taking away TV sales.

[Medium FormatPro]

don't think the Japanese will sell off a leading technology area like that to a foreign country

One could almost compare that example to; nobody ever thought that Chrysler would (in the past) go to Mercedes; and then eventually to Fiat.