NEW YORK (Reuters) - Powered by stronger sales of its camera chips for smartphones along with videogame systems and software, Sony Corp’s stock could rise by another 20 percent over the coming year, Barron’s said on Sunday.
The company, once a market leader in consumer-electronics, has fallen behind in sales of televisions, personal computers and smartphones in recent years, Barron’s said. Over the two fiscal years that ended in March 2012, Sony posted a cumulative loss of more than $9 billion, about half of its stock market value at the time.
But, aggressive cost-cutting measures like restructuring its TV business, selling its Vaio computer line 2014 and cutting back on the smartphones business, among others, have helped the company.
One area of strength is its gaming and camera chips. In gaming, Sony says it has sold more than 60 million PlayStation 4 consoles since its launch four years ago, said Barron’s. That’s nearly double the estimated unit sales of Microsoft’s Xbox One line of consoles.
Sony’s remaining TV businesses are benefiting from an industry upswing as consumers continue to upgrade to OLED and 4K screens. It has also learned to make money in streaming, and cashing in on a hit role-playing game packaged as a smartphone app, Barron’s added.
Reporting by Catherine Ngai; editing by Diane Craft