Sony 2010 Annual Report Download - page 25

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22
Sony realigned its reportable segments from the first
quarter of the fiscal year ended March 31, 2010 to reflect
the Company’s reorganization as of April 1, 2009, primarily
repositioning operations previously reported within the
Electronics and Game segments and establishing the
Consumer Products & Devices, Networked Products &
Services and B2B & Disc Manufacturing segments.
Additionally, Music is a new segment effective from the
first quarter of the fiscal year ended March 31, 2010, and
the equity earnings from Sony Ericsson are presented as
a separate segment.
In fiscal year 2009—the year ended March 31, 2010—the
operating environment for Sony’s businesses remained
harsh, mainly owing to a slump in demand brought
about by the global economic downturn, intensified
price competition and the continued appreciation of the
yen. Operating in such circumstances, Sony broke new
ground by unifying procurement activities across its
businesses, strengthening operations, reducing costs
and developing products, services and content that are
truly unique to Sony.
Overview of Key Businesses
LCD Televisions
During fiscal year 2009, Sony implemented measures in its
LCD television business aimed at strengthening operations
and improving profitability, while at the same time focusing
efforts on the development of appealing products. These
measures included announcing the formation of strategic
alliances with the Hon Hai Group for the production of LCD
televisions for sale in the Americas and Europe. The Sony
Group sold a portion of the equity and certain manufacturing-
related assets of our site in T ijuana, Mexico (former
name: Sony Baja California, S.A. de C.V.), which primarily
manufactures LCD TVs for the Americas, to the Hon Hai
Group. The sale gave the Hon Hai Group an approximately
90% stake in the Tijuana site, while the Sony Group retained
an approximately 10% share. Sony also agreed to sell to
the Hon Hai Group a portion of its shares in the Nitra factory
(former name: Sony Slovakia, Spol. s.r.o.), located in Slovakia,
which manufactures LCD televisions for Europe, as a result
Review of Operations
10.6
15.2 15.6
12% 14%
10%
2008 2009 2010
Unit sales of LCD televisions and market share
(Millions of units)
*Years ended March 31, shares are Sony estimates