There are no shortage of analysts and pundits who think that Apple should enter the TV business, but here's 3 billion reasons why I think the Cupertino giant should leave the TV business to companies that want to lose money.
Sony has posted its Q3 2011 fiscal year financial results, and as expected, the news is dismal with the company posting an operating loss of $1.2 billion and net loss of $2 billion on a revenue of $23.37 billion.
One area of Sony's business that's dragging down its bottom line is its TV business, with the company expecting to lose 220-230 billion yen (around $3 billion) this financial year. People don't seem interested in TVs like they once used to be. Sony is even planning on merging its entertainment business (movies, artists, etc) with its electronic brands (Vaio, Bravia, etc) in an effort to boost sales, but this might not be enough. Speaking to Reuters, a former engineer and executive at Sony said that "there's still a chance in home electronics and I don't think Sony should quit TV's, but unfortunately I can imagine the day may come when they will pull the plug on the business."
So on the one hand, Sony, a well-known, established and well-respected name in the TV business is losing money hand over fist, while on the other hand we have analysts and pundits (and for that matter fanboys) desperate for Apple to enter into this highly competitive, cutthroat market with TVs that will undoubtedly retail at a higher price point than the competition.
Doesn't make sense to me. Does it to you?
- More Apple TV lunacy
- Will voice control disrupt living room electronics?
- Tell me again, why does Apple need to make TVs?
- Can Microsoft beat Apple and Google and successfully ‘appify’ the TV?
- Steve Jobs might have ‘finally cracked’ the simplest TV UI, but here’s a problem he didn’t solve