Why Is Sony Thinking Of Selling Its PC Business And Vaio Brand?

In rather surprising revelation, Japanese Business Daily Nikkei, has reported that Sony is looking to sell its Personal Computers (PC) Business.

As a part of its much larger restructuring, Japanese white goods and electronic maker Sony is trying to sell–off its PC Business. It seems it has even found a buyer. Apparently, Japan Industrial Partners may buy the unit for a price ranging between Yen 40 Billion and Yen 50 Billion (US$ 396 Million to US$ 495 Million).

Why is Sony keen to sell of its PC Business? It’s no secret that worldwide sales of PCs have come down. The negatory trend is hurting PC makers. Companies like HCL and Wipro could be counted as early victims who recently, either shuttered the divisions or re–purposed the same for their other products.

Though a very powerful brand, the Vaio Series haven’t had a stellar year in terms of sales. The premium price–tag only added to the woes. Though Sony hasn’t officially come forth to confirm the news, a Sony spokesman said,

“The reports were not based on anything we have announced so we decline to comment on them, but we are studying various options for our PC business”

Is there no revival for the PC Business? The PC Segment has been hit hard by the growing adoption of Large–Screened Tablets and Smartphones. Realizing the need to be portable, even Microsoft managed to fit an entire Windows 8 Operating System within a tablet form factor, which we refer to as the ‘Surface’.

However, despite being eroded, the PC market isn’t dead. It has merely stagnated and started to show signs of regression. Perhaps if major overhaul is undertaken with refreshed hardware, buyers could come back. Couple the same with a major reduction in prices and the PC market could show signs of revival. At present there is a relatively large gap between the prices for a large screen tablet and a decent PC.

Sony isn’t the only company from Japan to have been affected by the change in buyer preference. Others like Panasonic and Sharp, has been undergoing tactile restructuring in an attempt to arrest losses too.

Fortunately, the buyer of Sony’s PC Division will set up a new company that will continue selling PCs and laptops under the Vaio brand, in which Sony would retain a small stake. Hence the long–time trusted Vaio Brand will survive, but will it last?