Sony CEO Howard Stringer talks about profit

As Chairman and Chief Executive Officer of Sony Corporation of America, Howard Stringer has had to dodge flak on behalf of Sony. But Stringer has high hopes for Sony’s future and plans to make Sony Corp. meet its goal of a 5% profit margin for next year. Here are some things that will help him, according to ABC News:

• In October, Sony reported a big profit loss (more than 90%) because of the laptop battery recall and expenses related to the PS3 rollout. But Stringer said the PS3 should break even by the end of the year.
• The Bravia TVs and audio products are doing well with gross margin profits of 4%. This is according to Stan Glasgow, president of Sony Electronics of America.
• The Sony Reader (an electronic book or e-book reader) are also selling well in the US. Sales of downloadable e-books are better than music sales from Sony’s Connect Store. They’ll also release a new wireless Sony Reader (to compete with Amazon.com which is expected to enter the e-book market).

The PS3 has to pull its own weight when it comes to making money. The old Sony practice of letting one division make the money so that another division can spend it is over, says Stringer. But with all the good news, that shouldn’t be too hard to do. You’ll see.

By the way, to keep the good news rolling, analysts are now affirming that the PS3 is expected to sell better than the Xbox 360 or Wii worldwide, so you can expect articles about that soon.

As Chairman and Chief Executive Officer of Sony Corporation of America, Howard Stringer has had to dodge flak on behalf of Sony. But Stringer has high hopes for Sony’s future and plans to make Sony Corp. meet its goal of a 5% profit margin for next year. Here are some things that will help him, according to ABC News:

• In October, Sony reported a big profit loss (more than 90%) because of the laptop battery recall and expenses related to the PS3 rollout. But Stringer said the PS3 should break even by the end of the year.
• The Bravia TVs and audio products are doing well with gross margin profits of 4%. This is according to Stan Glasgow, president of Sony Electronics of America.
• The Sony Reader (an electronic book or e-book reader) are also selling well in the US. Sales of downloadable e-books are better than music sales from Sony’s Connect Store. They’ll also release a new wireless Sony Reader (to compete with Amazon.com which is expected to enter the e-book market).

The PS3 has to pull its own weight when it comes to making money. The old Sony practice of letting one division make the money so that another division can spend it is over, says Stringer. But with all the good news, that shouldn’t be too hard to do. You’ll see.

By the way, to keep the good news rolling, analysts are now affirming that the PS3 is expected to sell better than the Xbox 360 or Wii worldwide, so you can expect articles about that soon.