Sony stakes fall to 31 year low with record losses

Published:  14 May at 6 PM

As reported by the BBC, shares at Sony have fallen to a 31-year low, just one day after the firm reported a record yearly loss of 456.7 billion yen ($5.7 billion; £3.5 billion).

At the Tokyo Stock Exchange, the company’s shares fell as far as 6.7 percent to 1,132 yen. Sony, which has been seeing a loss for the past four years, is predicting that it will go back to seeing profit during the 2012 financial year.

But experts say that investors are not convinced that the company will be able to teach its target. Sony is battling against many challenges, while the new president does not yet have a clear strategy as to how he can turn things around, said Yuuki Sakurai at Fukoku Capital Management.

The Japanese electronics manufacturer has been affected by a slew of issues during recent times. Its television business, traditionally one of its greatest growth drivers, has seen increased competition and plummeting prices. The department has been experiencing losses for eight consecutive years.

The firm has also been losing ground to competitors in the mobile phone and gaming business. Experts say the company has also been slowing behind in product development and innovation, which are key growth factors in the consumer electronics sector.