Oh, how the mighty heroes have fallen!
2 Samuel 1:27
According to a report from Reuters, Moody’s Investor Service has cut Sony Corp’s long-term debt rating because of reducing demand for its consumer electronics.
According to the report:
The company maintained its profit outlook for the full business year, but expects to sell fewer of its hand-held PSP and Vita consoles. It also trimmed forecasts for sales of TVs and compact digital cameras.
In the past several months Sony has spent $1.8 billion to buy companies ranging from medical equipment to cloud gaming.
The Moody report highlighted that, ”Without robust restructuring in the coming 12-18 months, Sony’s non-financial services businesses will at best achieve roughly break even, and are also at risk of remaining unprofitable.”
As a big Apple fan, I’m not here to gloat about this very sad news. I always believe that Apple and Sony have a lot common in terms of their business strategy. I’ve cover this in more detail in my piece on the The Verge forum - Samsung: Here is Why Apple Should Be Afraid.
In this piece, I’ve pointed out that Apple could suffer the same fate if they become complacent.