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"Supply Chain Management"
Sony looks to supply chain to boost flat sales
Electronics-giant Sony is set to invest $1bn in diversifying its supply chain as it looks to bring its television businesses into profit.
The company is to plough the cash into rival Sharp’s newest display factory in an attempt to boost sales of its Bravia liquid crystal display TVs.
Sony said its looses in its troubled core TV units had more than trebled from Y22.5bn in 2006 to Y73bn last year, but expected sales of its Bravia LCD panels to increase by seven million units over the next 12 months.
"They're obviously hoping the market will stay loose and panel prices will fall further," said Pelham Smithers, an analyst at Pali International told the Financial Times.
Sony said that its operating profits would rise to Y450bn ($4.3bn) in the year to March 2008, as a result of a series of cost cutting measures.
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