Smartphone business indispensable to brand portfolio: Sony CEO

A visitor tests a Sony Xperia 10 smartphone at the Mobile World Congress in Barcelona on February 27, 2019. (AFP)
Updated 22 May 2019

Smartphone business indispensable to brand portfolio: Sony CEO

  • Sony’s smartphone business reported an operating loss of ¥97.1 billion ($879.45 million) in the year ended March
  • Sony is beefing up gaming functions of its smartphones to tap customers of its successful PlayStation gaming business

TOKYO: Sony sees the smartphone business as indispensable to its brand portfolio, its CEO said, bucking calls from some investors that the Japanese electronics firm should scrap the money-losing business.
The smartphone business reported an operating loss of ¥97.1 billion ($879.45 million) in the year ended March, lagging rivals such as Apple and Samsung Electronics and weighing on the group’s record-breaking profit.
Sony’s consumer electronics hardware business “has centered on entertainment since our foundation, not daily necessities like refrigerators and washing machines,” Kenichiro Yoshida told a group of journalists on Wednesday.
“We see smartphones as hardware for entertainment and a component necessary to make our hardware brand sustainable,” he said. “And younger generations no longer watch TV. Their first touch point is smartphone.”
The business, originally a joint venture with Sweden’s Ericsson that Sony took full control of in 2012, has a global market share of less than 1 percent, shipping just 6.5 million handsets annually, mainly to Japan and Europe, according to Sony’s financial statement.
As Sony aims to make the business profitable next financial year, it ceased production at its Beijing plant and streamlined some sales operations globally.
Sony is beefing up gaming functions of its smartphones to tap customers of its successful PlayStation gaming business.
Yoshida also said he is confident in improving profitability at the pictures business.
Separately, Reuters reported Daniel Loeb’s hedge fund Third Point is again building a stake in the company, as part of its second campaign for change at Sony in six years.
Third Point wants Sony to explore options for some of its business units, including its movie studio, which the fund believes has attracted takeover interest, people familiar with the matter previously said.
“It was good that in the past Third Point came in and we had various discussions on the pictures business,” Yoshida said. Sony has sharply improved disclosures of the pictures business since then, he said.
The management team of the pictures unit has been “reshuffled almost entirely over the last three or four years,” Yoshida said.


Natixis opens investment banking office in Saudi Arabia

Updated 31 May 2020

Natixis opens investment banking office in Saudi Arabia

  • Western financial institutions have been seeking opportunities in Saudi Arabia

DUBAI: French investment bank Natixis has opened a corporate and investment banking office in Saudi Arabia’s capital Riyadh and appointed former JPMorgan banker Reema Al-Asmari as its chief executive officer, the bank said on Sunday.
Western financial institutions have been seeking opportunities in Saudi Arabia since the government unveiled plans to privatize state assets and introduced reforms to attract foreign capital under its Vision 2030 program to reduce the economy’s dependence on oil.
“By establishing a local presence, Natixis aims to deepen its relationships with its existing clients, including corporates, sovereign wealth funds and financial institutions, and to serve new clients, including family offices,” Natixis said in a statement.
The bank’s office, located in Al Faisaliah Tower, will offer “tailor-made capital markets products and investment banking services.”
Al-Asmari, who joined Natixis last August as an adviser to the bank’s Dubai branch, will continue to report to Simon Eedle, Natixis Corporate & Investment Banking’s regional head for the Middle East.
Eedle said in a statement that the bank’s commitment to the Middle East dated back more than 20 years and he believed its areas of expertise were closely aligned with the needs of clients in the region. “This is very much the case for the Kingdom of Saudi Arabia, notably in the context of Vision 2030,” he said, adding it was a “pivotal time” for the kingdom.