18 METRO HERALD Friday, February 7, 2014
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Business&Careers
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sony to stop making PCs to focus on tablets and TVs Sony is to stop making personal computers after more than 30 years as it shifts focus to tablets and smartphones, amid what it described as ‘drastic’ changes in the industry. The Japanese electronics giant is disposing of its loss-making PC business, which trades under the Vaio brand, as part of a shake-up which will also see it shed 5,000 jobs. It is also seeking to return its TV arm to profit by concentrating on sales of high-end models. Sony launched its first 8-bit personal computer, the SMC-70, featuring BASIC computer language and 3.5-inch floppy drive, in 1982. More recently it has developed slimline ‘notebook’ Vaio devices. It said neither its TV nor PC businesses will be ready to return to profitability in the current financial year to the end of March. It aims to conclude an agreement to sell Vaio to Japan Industrial Partners (JIP) by the end of next month. Sony has been challenged by stiff competition from Samsung and Apple, and has instead identified its divisions making cameras, Playstations and Xperia smartphones as three core businesses to drive its growth in electronics. The company said: ‘Following a com-
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prehensive analysis of factors, including the drastic changes in the global PC industry... the company has determined that concentrating its mobile product line-up on smartphones and tablets and transferring its PC business to a new company established by JIP is the optimal solution. ‘As part of the business transfer to JIP, Sony will cease planning, design and development of PC products. Manufacturing and sales will also be discontinued after the spring 2014 line-up to be launched globally. Even after Sony withdraws from the PC market, Sony customers will continue to receive aftercare customer services.’ It came as the company predicted it would swing to a 110billion yen (€802million) loss for the current financial year, after a €314m profit in the year ending March 2013. However there was a €197m profit for the third quarter, helped by improved sales of its smartphones and the launch of the Playstation 4. Sony said it would cut its global workforce by about three per cent by the end of March next year, with 1,500 job losses in Japan and 3,500 overseas.
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n VEHICLE maker AB Volvo said its profits fell by 37 per cent in the fourth quarter and it will lay off 4,400 employees in 2014, including the previously announced reduction of 2,000. Volvo’s chief executive olof Persson said in a statement, the job cuts will affect employees worldwide. Mr Persson said the cuts will help Volvo utilise its resources more effectively and are a consequence of the transformation the company is undergoing. Volvo said fourthquarter net profit fell by 37 per cent to 548m kronor (€62m) from 869m kronor a year earlier. Sales for the period rose by 8 per cent to 76.6bn kronor (€8.7bn) from 70.8bn in the fourth quarter 2012.
Calling on the doctor
Student representatives and student nurses Joe O’Connor, Emma Day, John Connor and Sarah Farrell wheel ‘Dr James Reilly’ to Government buildings to launch the Everybody Loves Nurses campaign, highlighting the low level of pay for newly-graduate nurses Picture: conor Mccabe
Passengers up for airlines Two major budget airlines carried an increased number of passengers last month. Ryanair numbers reached 4.6 million in January 2014 – a 5.0 per cent rise on the January 2013 figure. The Irish-based budget airline carried 81.6 million people in the 12 months ending January 2014 – a three per cent increase on the figure for the 12 months ending January 2013. EasyJet announced it had carried 4.02 million passengers last month – a rise of 3.7 per cent on its January 2013 total. Its planes flew 85.4 per cent full last month compared with Ryanair’s figure of 71.0 per cent. Its passenger numbers for the 12 months ending January 2014 totalled 61.47 million, which was a 3.6 per cent rise on the previous 12-months. n oPTIMISM about Britain’s economy has reached its highest level since 1997, thanks to an unexpectedly strong recovery, boosting prime minister David Cameron’s economic credentials ahead of a 2015 election. A poll by Ipsos Mori out yesterday, found one in four people trusted Mr Cameron more than other party leaders to manage the €1.85trillion economy, which is the sixth largest in the world.
n oNLINE store Amazon. com released its second batch of TV pilots yesterday and asked for feedback to help determine which shows to develop into series for its video streaming service. The company is investing in original content to attract customers to its Amazon Prime service. Prime also includes free two-day shipping for Amazon products. The new pilots include comedies and dramas for adults, plus five children’s shows, with a decision on how many to put into development to be made after customers have their say by leaving online comments and ratings.
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