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Electronics Production | February 03, 2009

Sony to break with tradition and outsource more

Sony is considering outsourcing its TV manufacturing to cut cost, says CEO Howard Stringer. The company also announced on January 22, 2009 that it will close 5-6 of its worldwide manufacturing facilities.
Sony has 57 production facilities worldwide and outsourcing would be a major break in its tradition of in-house production. The CEO is also to cut down the budget for factories and chipmaking equipment.

Sony is to examine all business areas to drawing up detailed plans over the next few months, BusinessWeek reports. However, outsourcing TV production seems to be a set goal. Sony’s TV division accounts for 10% of the company’s overall sales; however no profits were recorded in the division since 2005, said businessweek. However, Sony has already outsourced the production of LCD TVs. Wistron, Qisda, AmTRAN Technology, TPV Technology, and Foxconn have made LCD TVs for Sony, although at a rather small percentage.

So there is a possibility that Sony will go back to tested production partners if outsourcing becomes a reality.

Image source: Elcoteq

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