Sony has announced that the company will be selling its VAIO PC and laptop business to Japan Industrial Partners (JIP) by the end of next month following the drop in sales due to the consumer trend’s shift towards the smartphones and tablets market.
Sony said that it will be concentrating on mobile business including smartphones and tablets, where in other hand it will be reforming its TV business with high-end and more “smarter” models. The company has been consistently facing drop in demand for its PCs and laptops in recent quarters, so it decided to ditch the business during the financial result announcement of Q3 2013 Fiscal Year ending on December 2013.
Though there are no new models to release this year, except the recently released VAIO Flip 11A convertible laptop cum tablet and said that the designing and developing the PC devices has been already stopped, while sales and manufacturing of current available computers will be ending once the last VAIO device goes on sale, which is obviously the VAIO Flip 11A.
Despite finding the increase in year-on-year sales, Sony’s mobile division still forecasts around $1 billion annual loss for the complete year. Even the tremendous PS4 gaming console sales also not helped the company to come into the profits. Sony has sold over 5 million PlayStation 4 units and over 10 million games in first two months.
There will be 5,000 job cuts worldwide by the end of the FY2014, including the 1,500 cuts in Japan. However, the new owner of Sony’s VAIO PC business, JIP stated that it will be retaining about 300 employees to work at Sony’s current VAIO headquarters in Japan.
Sony would be concentrating to develop and produce more high-end Smart TVs that also includes the Ultra HD 4K screens, but that could cost them around $200 million to restructure across the TV and PC divisions.