Sony hit by plunging prices for consumer electronics
Last Updated: Friday, October 30, 2009 | 10:23 AM ET
CBC News
A Sony executive announces a price cut for PlayStation Portables, at the Tokyo Game Show. (Associated Press)Consumer electronics giant Sony Corp. reported a smaller than expected loss, saying its TV and gaming business has been hurt by intensifying price competition.
Sony lost $289 million US for the July-September quarter, which was smaller than forecast but it managed to turn a quarterly profit in its core electronics and device business.
The Tokyo-based firm acknowledged its liquid crystal display TVs and game machine computer chip businesses continued to be hurt by price wars. Profitability in that business weakened compared to the same period a year earlier.
Last week, New York-based consumer research firm NPD Group reported that prices for consumer electronics goods have been slashed as retailers try to move goods, according to the Wall Street Journal.
An example is flat-panel TVs. NPD Group said the average price had dropped to a record low of $630 US by the end of August, down from more than $900 a year earlier.
Across the U.S., news agencies are reporting big price drops to lure back customers ahead of Black Friday, the day that marks the start of the Christmas buying season in the U.S. It usually falls on the third Thursday in November.
At a Best Buy in Freemont, Ohio, cellphones that were selling for $100 two weeks ago could be had for $50.
In Davenport, Iowa, some high-end items at a local retailer were going for about half as much as they did last year. For instance, a 46-inch flat screen TV with 120 Hz technology was priced at $999, compared to $1,999 last Christmas.
With files from The Associated Press
