Sony Panasonic is forced to transform and promote the development of artificial intelligence
Panasonic is 100 years old this year, and Sony is 72 years old. These two established Japanese electronics companies experienced tremendous losses after five or six years. After a difficult transition, they are still active in the world of consumer electronics. The secret of their "being youthful" is to shrink the electrical business and switch to the high-end to maintain the brand image of consumers, and to develop large profits in commercial business.
Making a lot of money in commercial businessSony's fiscal year 2017 (as of March 31 this year) is expected to hit a new peak in operating profit in the past 72 years, operating profit will reach 720 billion yen. Among them, the Sony Semiconductor business, where the image sensor is located, is the "champion" of Sony's profit contribution. In the first three quarters of 2017, the accumulated profits reached 165.4 billion yen, mainly benefiting from the surge in sales of image sensors driven by smartphones.
Jiang Jingyuan, director of Sony China Media Communications Department, told reporters that Sony had sold office buildings in Japan in the early years, and the money recovered was invested in the construction of image sensors.
Although the mobile phone has been squeezed out of the global TOP10, the top six mobile phone manufacturers in the world have more or less adopted Sony's image sensor: Apple's mobile phone uses Sony image sensor, and Samsung's image sensor in the mobile phone is 40%. Huawei is a major customer of Sony's image sensor. The DJI UAV also uses Sony image sensors.
Although the global smartphone market is growing steadily, dual-camera phones are becoming mainstream, and with the gradual increase in face recognition, Jiang Jingyuan expects that a mobile phone will need two or three or more sensors in the future.
The same is true for smart cars, which require a lot of image sensors for autonomous driving. At 2018CES, Sony has already started strategic cooperation with well-known automakers such as Toyota, Nissan, Hyundai and Kia. Sony CEO Hirai Kazuo also released a "safety" strategy, which uses a Sony image sensor to create a safe space like a cocoon around a smart car.
Panasonic also makes big money through commercial business. At present, Panasonic is the world's largest supplier of electric vehicle batteries, and Tesla's batteries are also produced by its joint venture with Matsushita. Panasonic not only operates a large-scale in-vehicle battery factory in the United States and Tesla, but also completed its production in 2017 in Dalian, China.
In 2018, Matsushita will celebrate its 100th anniversary, and Panasonic has raised its sales of the automotive battery business in the year of 2018 to 2.2 times in 2015, reaching the goal of 400 billion yen.
In the grand 2018CES Panasonic exhibition area, 80% of the content displayed was for commercial use, and for the first time, no home appliances were exhibited. Panasonic wants to express that Panasonic, which has grown up with home appliances, is developing in the B2B solution business. In the future, Panasonic will focus on providing solutions in four areas: residential space, supply chain, mobile and environmental (energy).
Home business high-endMatsushita Electric (China) Co., Ltd. and Chairman of China·Northern East Asia, Yokohama, said during the 2018CES that Matsushita will vigorously develop B2B business in China, but will never give up the home appliance business. He pointed out that Panasonic's brand awareness in China is high, so Panasonic's B2B business in China can be carried out so smoothly, which is very precious for Panasonic.
Differentiated products are the key to Panasonic's home business. In January of this year, Panasonic released a new smart toilet cover in Shanghai. Wu Liang, general manager of Panasonic Home Appliances China, said that in the future, Panasonic will bring more avant-garde bathroom concepts to consumers and carry the toilet revolution to the end.
Sony's consumer electronics business is also shrinking its front line, and its reserved TV and other businesses are sticking to the high-end market. According to the research company IHS data, in the first three quarters of 2017, Sony's color TV shipments ranked fifth in the world, behind Samsung, LG, TCL, Hisense. However, Sony TV has the highest average price in China, the United States and other markets. Sony OLED TV firmly holds the leading position in the high-end TV market, and its price is higher than Samsung TV.
Jiang Jingyuan believes that the Sony TV business has been revived. Sony became the sales champion in the 2017 China OLED TV market, although sales were not as good as Skyworth. However, a Sony OLED TV is almost two or three times the price of the same size Skyworth OLED TV, such as 55-inch OLED TV Sony sold more than 20,000 yuan, Skyworth has dropped below 10,000 yuan.
Currently, Sony's consumer electronics business includes televisions, digital cameras, and audio products. Jiang Jingyuan said that TV is the key to the revival of Sony's consumer electronics brand. Sony's micro-camera business has developed steadily. After selling a camera, “Suo Powder†will buy multiple lenses to achieve continuous sales. In 2017, Sony audio products in the Chinese market achieved a threefold increase compared to 2015. "China's middle class is on the rise, and consumption is gaining momentum. As long as Sony gets stuck in high-end, it will naturally be a source of users."
Sony has been rumored to be bankrupt in the past few years, and has sold laptops, batteries and other services. However, the fiscal year 2017 is about to hit a new high in operating profit in the past 72 years. Jiang Jingyuan believes that "soose powder" plays an important role in the Sony renaissance. After research, "soose powder" and "fruit powder" (Apple users) are different, compare houses, like anime, and play with all kinds of things without fear of trouble.
In the face of the rise of Chinese and South Korean competitors, Sony and Panasonic have done something wrong with the loss of home appliances business. Shrinking the front line, reducing losses, leaving the business focus on differentiated, high-end products, achieving profitability and maintaining the image of the user's mind.
Next stop artificial intelligenceAfter retaining the brand image of B2C business and making money through B2B business, Sony and Panasonic are actively planning the future.
Kazuo Hirai will be retiring on April 1, 2018, and will hand over the Sony CEO’s handsome seal to his own right-hand man, the current group CFO’s Yoshida Kenichiro.
At the press conference on February 2, Yoshida admitted that the world's largest market capitalization companies are now occupied by high-tech companies. As a high-tech company, Sony has a sense of urgency. Netflix, a US streaming service provider, has an operating profit of only $800 million, but its market capitalization is about $116 billion, almost twice the market value of Sony's $63 billion.
Sony's gaming and network services business, its subsidiary Sony Interactive Entertainment, and Netfair's business volume are evenly matched, and it is expected to achieve operating profit of 180 billion yen ($1.64 billion) in FY2017. However, even with the franchise of the best-selling PlayStaTIon game, Sony is not a rival to Netflix in terms of company market value. Therefore, Yoshida will announce the new mid-term plan for the fiscal year 2018~2020 in the spring of this year, integrating and optimizing the company's global resources to create new value.
Technology R&D is especially important. When Sony can re-launch a popular mainstream product like Walkman, it is the real revival of this technology company. Artificial intelligence and robots will be the direction of Sony's efforts.
At 2018CES, Hirai Kazuo used four examples to interpret Sony's artificial intelligence path. The first is a drone equipped with Sony's image sensor and robot technology, which has been applied in the fields of terrain, large-scale building tracking, agriculture and climate. Next is the voice robot Xperia Hello, which recognizes family members and can talk to them to help with everyday life. Then there is the new concept car, which can be remotely controlled from the cloud. It carries sensors that can be used to analyze the captured images through artificial intelligence. Finally, it is the entertainment robot dog Aibo, which can become an emotional companion for family members.
Aibo is just the first step in Sony's artificial intelligence and robot strategy. Jiang Jingyuan said that in the past two or three years, Sony has acquired some American and Israeli artificial intelligence companies, using their own accumulation in the electronics industry, and quickly grafting artificial intelligence technology to plan for a bigger blueprint for the future.
Panasonic's blueprint is envisioned that by 2030, fully automatic cars will be popularized, and travel time and travel space will also change significantly. Panasonic will be able to use 3D projection, audio solutions, etc. to create a new entertainment experience. For example, in the era when AR equipment for smart glass is popularized, AR equipment displays various information according to different situations, enhancing the enjoyment of the public to enjoy sports events.
For 2050, Panasonic will aim to create a society that uses clean energy better. Panasonic has cooperated with partners such as Tesla of the United States and Gogoro of Taiwan, China in lithium-ion batteries and solar cells.
Obviously, using artificial intelligence and new energy technologies, Sony and Panasonic hope to create a new round of growth cycle.
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