Things had been going well for Sony's shareholders after the appointment of Howard Stringer as the new CEO. But, then things started to fall apart, again.
Sony Corporation (ADR) (NYSE:SNE) makes the batteries for the laptops from companies like Dell, which as you know are being recalled due to overheating and fires. Sony is also being damaged by concerned that its new PlayStation 3 will launch late. To complicate the competitive landscape, Microsoft has been updating its XBox gaming system and upping its marketing spending. Sony's shares have dropped from about $53 in late April to $39 yesterday.
Under Mr. Stringer it would appear that little has improved, despite the initial optimism of his appointment. The recent bad news could also hurt the company financially, with the battery recall cost hitting as much as $500 million.
Sony is not longer viewed as the engineering powerhouse it once was, introducing innovative products virtually every year. That mantle seems to have passed to Apple Computer, Inc. (NASDAQ:AAPL).
With Sony on a spiral down, perhaps Apple will learn something about the road ahead.
Douglas McIntyre is a partner at 24/7 Wall St.
Why isn't Bank of America updating its shareholders on CEO situation?
Before the bell: Futures sharply lower on Dubai's debt problems
Will Rich Ross really have a positive impact on Disney's movie operations?
