Sony CEO Reaffirms Profit Margin Goals

Sony CEO Sir Howard Stringer

Encumbered with a huge global recall of faulty laptop batteries and PlayStation 3 production delays, 2006 has been a turbulent year for Sony. Nonetheless, its CEO, Howard Stringer said the company is prepared to meet its operating profit margin goal of 5% for the next fiscal year (March 2008). Note: Sony’s operating profit margin was 3.9 percent last year.

(News Source: AP; By May Wong AP Technology Writer; LAS VEGAS Jan 8, 2007)

Speaking before a group of reporters at the International Consumer Electronics Show, Stringer said he still needs to assess with other top executives how various Sony divisions will help steer the battered behemoth back to health.

Sony last year set a target of reaching an operating profit margin of 5 percent for the fiscal year ending in March 2008.

“I have ideas where we could get the money, but I could be wrong,” Stringer said, adding that he needs to first hear from a number of Sony units about their performance during the holiday quarter.

In October, Sony reported a 94 percent drop in profits for its third quarter, due largely to a global recall of faulty laptop batteries and losses in its gaming division related to the PlayStation 3 rollout.

Stringer declined to cite the importance of one division over another in Sony’s recovery but stressed that the company’s former practice of allowing one unit’s success to cover the losses of another is history. “We have to get used to the idea that the right hand can make money just like the left hand,” Stringer said.

After falling behind rivals in key products such as televisions and music players, electronics sales now face a more positive outlook, according to Stan Glasgow, president of Sony Electronics in America.

Aided in part by robust sales of its Bravia line of TVs and home audio products, Glasgow said the electronics unit was now seeing gross margin profits of 4 percent, he said. Startup costs for the PlayStation 3 have been hefty but Stringer said he expects the game console to break even by the end of the year.

U.S. sales of the Sony Reader, an electronic book reader, are also doing better than the company expected, Stringer said. Sales of downloadable e-books are exceeding the sales of music on Sony’s online Connect Store.

A new Reader model, likely adding wireless capability, will likely appear within the year as new rivals, namely Amazon.com, are expected to enter the market, he said.



MDR-NC60: “new level of peace and quiet to a noise-polluted world”

MDR-NC60

Sony has unleashed array of new noise cancelling products during the last quarter of 2006 – that began with the MDR-NC22, MDR-NC32 and culminated with the new Network Walkman S700/600 series which feature built-in noise cancellation technology. The MDR-NC60 as shown during CES 2007 represents yet another new Sony product which aims to bring a “new level of peace and quiet to a noise-polluted world.” Designated to replace the MDR-NC50 (debut in summer of 2005), the MDR-NC60 offer increased ambient noise cancellation performance up to 85 percent. According to Sony’s press release, increased noise reduction performance is approximately five percent more than prior generation headphones and Sony tests indicate that the MDR-NC60 headphones offer noise reduction of more than 16.5dB at the 200Hz level.

The MDR-NC60 appears to reflect Sony’s commitment to style and technology – features a sleek earcup with sophisticated piano-black finish, ear and head cushioning, and a single-sided cord. Complementing the noise canceling features, 40 mm drivers and neodymium magnets allow the new headphones to reproduce clearer and crisper sound.

Designed with a dual-use capability not found in other high-end noise canceling models, the MDR-NC60 can also be used without battery as high quality conventional stereo headphones to accommodate individual listening preferences as the environment changes. Another convenient feature is a monitor switch located on the outside of the left earpiece that lets you temporarily suspend the noise cancellation feature and mute the music to listen to flight attendants or announcements.

The MDR-NC60 will be available at SonyStyle stores and leading retailers nationwide in March 2007 for about $200. With that MSRP, hopefully the new MDR-NC60 will feature better SQ and comfort over the MDR-NC50 as reviewed within ATRACLife. Stay tuned for its specifications.



New VAIO WA1 Wireless Digital Music Streamer


Sony today unveiled a new wireless digital music streamer for your music integration needs. Like its peer, the Sony NAS-CZ1, the new VAIO WA1 Wireless Digital Music Streamer lets you stream music from any PC in the house via an existing wireless home network or a “peer-to-peer” wireless connection so you can enjoy music in “big stereo” sound. Additionally, it can also connect to thousands of Live365.com Internet radio stations.

Modern Design Meets Boombox Sound

In addition to being able to stream wirelessly from a PC, this modern-day boombox is semi-portable. It integrates 128 MB of onboard RAM and up to four-hours of battery life so you can store about one CD’s worth of music on it and take the unit with you.

Although relatively small, the streamer’s two eight-watt stereo speakers pump out impressive sound that fills the room. Its six-band graphic equalizer and audio sound amplifiers and enhancers help deliver the sound you expect from Sony.

The device also comes equipped with a remote control and touch-screen sensor, as well as a non-contact sensor that lights the display. A five-line LCD and on-unit controls make it easy to view and manage artists, song titles and Live365.com Internet radio stations.

The streamer integrates a line-in port so you can connect a personal music device, an analog audio out port and an S/PDIF digital out port so you can connect it to your home stereo system. A built-in headphone jack lets you listen to music privately. The device also includes a built-in music alarm clock.

The streamer supports the ATRAC format, Mp3, WMA, AAC, WAVE and Linear PCM. Naturally, DRMed ATRAC3, ATRAC3plus and AAC tunes are not supported. Available in white and black, the wireless streamer will retail for approximately USD$350 at www.sony.com/wa, Sony Style ® stores and select retail outlets nationwide.

VAIO WA1’s Specifications after the jump

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Sony’s New 8GB Memory Stick PRO DUO (MSX-M8GS) Revisited

MSX-M8GS

The 8GB Memory Stick PRO™ Duo which was supposed to be available in 2006 will finally hit retail shelves sometime in February 2007. According to Sony, the new 8GB MS PRO Duo will retail for approximately $300 at both sonystyle.com and Sony Style® retail stores. Naturally, expect prices to fall once SanDisk ships its 8GB MS PRO Duo.



Missed our CES coverage?

If you’re new to the site, or may have missed our exclusive coverage (including high resolution pictures, commentary) of nearly everything Sony @ CES then feel free to reference this all-inclusive entry:

- Sony CES Introduction

- NW-A3000/NW-A1000 US Debut

- Connect Reader

- Sony’s iPod Car Adapter?!

- Connect Video

- Connects2 Walkman Car Adapter

- From Push to Pull - Sir Howard’s Quest

- Compact Premium Audio System

- 4GB + 8GB MS Pro Duo

- MDR-EX90LP

- Vaio Wireless PC Audio System

- PRS-500 ‘E-Reader’

- MDR-710LP

- ‘Sirius Connect’ SIR-SNY1

We have one more video to share/discuss, which is a look at an early beta of a new PSP firmware which will enable users to watch TV wirelessly anywhere in the world amongst other things. Also, feel free to comment on the quality of our coverage and/or put requests in for next year.



‘Sirius Connect’ SIR-SNY1 (Sony @ CES 2006)

Here’s something cool we came across at the car audio section of the Sony Booth:

Generic description:

This handy package lets you receive the great programming of SIRIUS through any 2004-up Sony stereo with satellite radio controls.

The SIRIUS radio plugs right into the back of your Sony stereo, and sends channel information, including channel name, artist name, program name, and song title, to your stereo’s display. The radio also features a built-in pass-through connection, so you can keep your Sony CD changer hooked up. The package includes a roof-mount SIRIUS antenna.

Note: A subscription to SIRIUS is also required.

This will be available at Crutchfield (and many other retailers) in mid Feburary for about $100.



MDR-710LP (Sony @ CES 2006)

Sony presented a ultraportable headphone that was reminscent of the ‘eggo’ line from years ago dubbed MDR-710LP. I wore it for about a minute, and it was connected to a NW-E507; I would say it’s a fair headphone for the price if you can’t score an ‘eggo’ and want something compact and convienant but can also take a bruising. The sound was nothing to write home about (hence why I’m writing here, boohoo) — bass present, no real clarity in the midrange with accelerated and troubling highs — but I’d recommend it to someone who doesn’t mind spending $59.95 (msrp) for the heck of it.

Right click and save or view image accordingly for full view.

(dolled up)

A picture of its amazing folding ability, after the jump..

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