Quote:
Originally Posted by Erick Estrada
What's going to be left is they get out of consumer electronics like TV's and phones which are two areas they are struggling mightily with a bleak outlook on the horizon? Music/Film and PS? I don't think they have the 1st party game recognition and portable market to survive like Nintendo.
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Their TV sales accounted for 9% of 2013 revenue, phones a more significant 18%. However, on the bottom line, both of these have been losing money and likely requiring significant R&D expenses (towards a losing cause).
Financial Services accounted for 77% of Sony's 2013 operating income ($145 MM), while mobile products and home entertainment contributed a negative -$181 MM in the same year.
Aside from these, Sony is left with: imaging products (likely in decline), games, audio, semiconductors, Sony Pictures, and Sony Music.
As for servicing the debt, I would wager that without these money losing divisions, their operating cash flow would well cover the expenses for growing the business and servicing the debt.
It would be painful for a company that does not want to lose face, but there are options.
(note: I know next to nothing about consumer products businesses. Just looking at their financial statements. Sony is more than the what we the average north american person sees: Average TVs, average phones, awesome game system)