A new report from Nikkei, the Japanese news service indicates that Sony may be looking to sell off its PC business. VAIO currently offers slim pickings of desktops and a wide range of notebooks and Ultrabooks. Despite having a very innovative line of computers like the Tap 20, Flip series and the powerful VAIO Z, Sony has never been a large player in the PC business and commands a 1.9% share of all PCs shipped during the January-September period of 2013.

Unlike HP, Lenovo, and Dell who cater to budget-conscious buyers, Sony has traditionally targeted the more premium segment of the PC industry which is primarily dominated by Apple. Moody recently cut Sony’s credit rating to junk, specifically pointing out the company’s personal computer division. This was as odd then as it is now, seeing how PC sales are a part of the Mobile Products & Communications segment, of which less than half of this is PC with smartphones and tablets instead dominating this segment, which has a 17.9% part of total sales in Sony Corp. So if the division does little for Sony’s bottom line, could the sale of VAIO be true?

When Sony was asked about it, the company guided us towards their previous remark:

 A press report on February 1, 2014 stated that Sony Corporation (“Sony”) is discussing with Lenovo Group (“Lenovo”) the possible establishment of a joint venture for the PC business. As Sony has announced previously, Sony continues to address various options for the PC business, but the press report on a possible PC business alliance between Sony and Lenovo is inaccurate. 

Sure that doesn’t give us a lot of info but it’s also not an outright denial, indicating that Sony is flirting with the idea, at least. It seems that if a sale is in the cards, the division is valued at around 50 billion yen (or $492 million) and while it might not be a huge stockpile of cash, seeing how little VAIO currently brings to Sony, it may in fact be in their best interest to sell off the brand and invest the money in areas where the company is continuing to see growth, like PlayStation and Xperia.

If a brand like Lenovo doesn’t bite, it’s believed that Sony will instead spin off the brand as its own entity with Sony only retaining a small stake in the company. The division which employs nearly 1,000 people, will see a majority of them move to the new company while others will be transferred to Sony. While the VAIO brand is well known in Asia and in some parts of Europe, it seems likely that the new company which will do business under VAIO will likely withdraw from many markets, including the US.

If the sale of Sony’s PC business goes through, it will result as a net loss for the company which will be a first in two years for the year ending March 31. With PC sales declining year ofter year, despite resulting in a loss, this may be the most Sony will ever get for the division as more consumers shift towards tablets.

Discuss:

Should Sony sell off VAIO or do you see value in the brand for Sony?

[Via Nikkei]