In a program on CNBC, Rob Enderle, President and Principal Analyst at Enderle Group criticized Sony Corp (ADR) (NYSE:SNE) for not being able to catch up in the market. Enderle thinks that in trying to beat Apple Inc. (NASDAQ:AAPL), Sony Corp (ADR) (NYSE:SNE) has found itself distracted from the main market goals. He said that Sony must go back and rebuild itself just like Apple Inc. (NASDAQ:AAPL) did in late 90’s.
“Ever since they acquired content, the company has been in trouble. Instead of the content adding value to the company, it created conflict […],” said Enderle.
Enderle said that Sony Corp (ADR) (NYSE:SNE) tried to tackle the market penetration of Apple Inc. (NASDAQ:AAPL)’s iPod by launching Mp3 players but failed. Then it wanted to beat Apple’s iPhones, but the company created more problems for itself.
Answering the question about how Sony Corp (ADR) (NYSE:SNE) can actually rebuild itself, Enderle gave the example of Apple Inc. (NASDAQ:AAPL) and said that Sony must get back to its core business. He said that when Apple was in problems, Steve jobs focused on Apple’s core product, which was Mac. He cut the PDA’s, printers and all other secondary devices and fixated all the efforts on Mac and used it as a primary product to target consumers.
Sony Corp (ADR) (NYSE:SNE) has announced that it is going to cut no less than 1,000 jobs from its mobile division. The company is also focusing more on high end phones to compete Apple Inc. (NASDAQ:AAPL) and Samsung. Commenting on this, Enderle said that Sony has always been on the high end of the market and a prime value provider. Sony Corp (ADR) (NYSE:SNE) was a market leader in TV industry and the time has come for the company to reinstate its position.
Enderle suggested Sony Corp (ADR) (NYSE:SNE) to follow Apple Inc. (NASDAQ:AAPL) and create a great phone that will attract everyone, from customers to carriers. He said that Apple created something extraordinary and stood out in the market.
David E. Shaw‘s D. E. Shaw is one of the shareholders of Sony Corp (ADR) (NYSE:SNE), having 54,312 shares of the company.
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