Sony says premium strategy is achieving results

Concentrating on high-end products is returning profits, the company says

Sony is winning customers and seeing clear results from a strategy to focus on premium products in the U.S. and improve interaction with consumers, a top executive said Tuesday.

The company, which for years tried to battle lower-priced competitors, decided more than a year ago to concentrate on high-end products that showed off the best of Sony technology and allowed it to make money. And, so far, so good, said Mike Fasulo, president of Sony Electronics, at a briefing with reporters in San Francisco.

"In November, we recorded record profits and that's not by accident, that's by clear strategy," he said.

Part of that strategy called for Sony to focus on a small number of product areas: home entertainment, audio, digital imaging and smartphones. Products outside of those core areas were discontinued and Sony reduced the complexity of its business, cutting the number of individual products it sells in the U.S. from around 2,000 to around 800. Next year, Fasulo plans to get that down to 500.

As a result of the new focus, Sony says its best-selling TV is a model with a $1,499 price tag.

Leaving the low end to other brands means Sony won't have the largest market share in TVs, but Fasulo said he's much more interested in making Sony the leader in higher-priced sets or in new technologies like 4K. Such sets offer consumers four times the resolution of high-definition and are attracting consumers.

Over the Black Friday sales period, when stores typically cut prices to attract customers, Sony managed to sell 11,000 4K televisions without deep discounting, he said.

In fact, Fasulo criticized some of Sony's competitors for the prices at which they sold 4K TVs over the period, calling them "irresponsible."

"It tells me they have inventory problems and are not selling through at the rate they thought they would," he said.

Sony's flagship products for 2015 will be unveiled in Las Vegas on January 5 at the International Consumer Electronics Show.

Ahead of that event, Fasulo had a parting message.

"Stay confident of Sony in America, we're back."

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags consumer electronicssony

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?