Sony Corp. (NYSE: SNE) aims to boost operating profit 25-fold within three years by growing its camera sensors and PlayStation units, its chief executive said, outlining a strategy that could see the company exit the cut-throat TV and smartphone sectors.
CEO Kazuo Hirai said on Wednesday the Japanese consumer electronics firm would no longer pursue sales growth in areas such as smartphones where its has suffered competition from cheaper Asian rivals as well as industry leaders like Apple Inc. (NASDAQ: AAPL) and Samsung Electronics.
Sony would instead focus its spending on more profitable businesses such as camera sensors, video games and entertainment as it seeks to return to growth after forecasting for this financial year its sixth net loss in seven years.
The comments, made just as the Tokyo market was closing, helped Sony's American Depositary Shares rise 1.6% in New York from Monday's close to $27.46 U.S., within a 52-week trading range of $15.93 U.S. to $28.12 U.S.
Asked about the TV and mobile phone units, Hirai said he would not "rule out considering an exit strategy", Sony's clearest statement to date about the possibility of selling or finding partners for these struggling units.
Sony is in the midst of a restructuring that has so far seen it sell off its personal computer division and spin off the TV business. It has also axed thousands of jobs.
Sony shares have risen more than 80% over the past year as investors applauded the restructuring, which accelerated since Hirai appointed Kenichiro Yoshida as his chief strategy officer in late 2013.
