from the dept. Japanese electronics giant Sony Corp <6758.T> said on Thursday it would upgrade its cellular phone handset operations into a full division and put more focus on mobile computing products. As a sputtering U.S. economy and strains from its gaming division take their toll, Sony hopes to reignite its business by focusing more on mobile products, an area where Japan is leading the world and seeing brisk growth. As part of its strategic business plan for the 2001/02 year beginning in April, Sony said it would increase the number of its major divisions, internally called "network companies," to seven from the current five. The structure was first adopted in 1999. Sony's profits sagged in the crucial last three months of 2000, hit by production glitches on its flagship PlayStation2 game console and lingering strength in the yen, causing it to halve its full-year net profit forecast to five billion yen. Sony's shares closed down 4.06 percent, their biggest one-day fall since December 15, as fears grew over whether the recent global rebound in technology stocks could be sustained. Although Sony managed to score a 14 percent rally for most of March, Thursday's close of 8,970 yen ($73.36) is almost half the closing peak of 16,300 yen seen a year ago. SONY TO EMBRACE BROADBAND Sony also said that the new structure would also put it in prime position to take advantage of the increasing use of high-speed, or broadband, Net access. Chief executive Nobuyuki Idei said the company's decade-long investments in U.S. entertainment businesses, which have often met severe criticism, have finally begun to bear fruit. "After 10 years of experiences in managing various businesses such as music, picture, games and electronics, we are now well positioned to take the lead in the coming broadband age," Idei told a news conference. Sony has always stressed the inter-operability of its product line, which it hopes will integrate its content, computer, and audiovisual products. NEW STRUCTURE While expanding the number of its network companies, Sony also moved to centralise management by creating what it calls a "global hub" which will be led by Chairman and Chief Executive Nobuyuki Idei, President and Chief Operating Officer Kunitake Ando, and Chief Financial Officer Teruhisa Tokunaka. This global hub will centralise decision making on strategic investments and also exercise greater control over strategy in its U.S. entertainment holdings as well as Sony's new ventures into financial areas, such as banking. Sony already operates liability and life insurance units. Sony's seven network companies are: Digital Telecommunications: mobile phone development, design, and manufacturing. Semiconductors: design and manufacturing of integrated circuits. Core technologies: electronics devices, recording media, storage devices, flat-panel and conventional displays. Displays: finished projectors and computer displays. Home: VAIO desktop personal computers and televisions. Broadband solutions: home video, home audio, professional broadcast equipment, video and DVD players. Mobile network: development and design of VAIO laptop computers, handheld computers, personal audio, car audio, digital video and digital cameras. < | >
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