Trade Sony stock online!
SONY

Analysis before buying or selling Sony shares

Trade Sony stock online!
BUY   SELL
77% of retail CFD accounts lose money - Plus500.com
 
Chart provided by Tradingview

Elements to consider before selling or buying Sony shares

Analysis N°1

Firstly, we will be able to follow closely the group's developments in certain segments in which it is likely to develop further, such as the mobile sector where the group could position itself against its competitors. In the same way, we will also follow the games console segment, which remains an area in which the Sony group can develop further.

Analysis N°2

Of course, we will also have to keep an eye on the competition in this sector, which is both very strong and very aggressive. We will therefore follow Sony's main competitors, particularly in the fields of electronics and mobile phones.

Analysis N°3

We will also keep an eye on certain external factors that can influence Sony's business, such as taxes and taxation, but also changes in legislation in certain geographical areas in which the group markets its products.

Analysis N°4

Sony's pricing strategy will also be important, as the group is increasingly competing with products that are of lower quality but sold for much less.

Analysis N°5

Finally, Sony's innovation and investment in research and development will of course need to be closely monitored to ensure that it remains at the cutting edge of technology.

77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500

General presentation of Sony

It goes without saying that an excellent knowledge of the Sony company is essential if you want to carry out a good analysis of this stock's price. You need to know its business and revenue sources in detail in order to predict its future growth or recession. Here is a complete overview of the company:

Sony Group Corporation, formerly known as Sony Corporation, is a Japanese company that operates in the computer and technology sector. Specifically, the group is a world leader in the design, manufacture and sale of electronic and entertainment products.

In order to better understand the activities of the Sony Group, it is possible to divide them into different divisions according to the share of turnover they generate and in this way:

  • Firstly, the sale of video games represents almost 28.9% of the group's turnover with consoles, software and consumables.
  • Next is the sale of multimedia products, which generates 21.1% of turnover, with televisions accounting for 37.3% of this segment, mobile telecommunications equipment for 18.8%, cameras and video cameras for 17.7%, audio and video equipment for 16.5% and other products for 9.7%.
  • Music production and distribution accounted for 10.3% of sales with Sony Music Entertainment.
  • The sale of imaging and sensor solutions generates 10.4% of turnover.
  • Finally, the production and distribution of films and television programmes generates 8.4% of turnover with Sony Pictures and Columbia Pictures.
  • The remaining 20.9% of turnover comes from ancillary products, in particular financial services.

Geographically, the group generates 32.9% of its turnover in Japan, 8.5% in China, 9.6% in Asia Pacific, 23.9% in the United States, 20.2% in Europe and 4.9% in the rest of the world.

Analysis before buying or selling Sony shares
77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500

The major competitors of Sony

We now propose to tell you a little more about the environment in which the Sony Group operates and, more specifically, about its major competitors on the market with a presentation of its most important adversaries:

Intel Corporation

This American company is currently the world's number two semiconductor manufacturer in terms of turnover. It produces microprocessors, motherboards, flash memory and graphics processors. The group is also listed on the Nasdaq market in the US.

Samsung Electronics

This Korean company specialises in the production of electronic products. It is a subsidiary of the Samsung group and one of the major Korean chaebols. The company employs 308,745 people and is the 13th largest in the world according to the Forbes Global 2000 ranking. The group's turnover also ranks it second in the world high-tech industry.

Qualcomm

This American company specialises in mobile technology and in particular in the design and implementation of telecommunications solutions. It is one of the world's leading companies in the design and sale of mobile phone processors.

Tencent

In the field of video games, Tencent is an internet and mobile services and online advertising company based near Shenzhen in China. The group's services include social networking, web portals, online commerce and multiplayer games. The group also runs the Tencent QQ instant messaging service and operates one of the largest web portals in China.

Microsoft Corporation

Finally, the American multinational computer and microcomputer company Microsoft is one of the largest capitalisations on the NASDAQ. The group, which employs 148,000 people in 120 countries around the world, specialises mainly in the development and sale of operating systems, software and related hardware products. The Microsoft group is thus present in various segments, including cloud computing with Azure, websites with the search engine Bing, the social network Linkedin, the e-mail system Outlook.com, video game consoles with the Xbox and tablet PCs like the Surface.


The major partners of Sony

During the last decades, the Sony group has strategically created associations with certain competing or complementary companies in order to maintain its place among the market leaders.

Samsung

In 2004, it thus established a partnership with Samsung for the joint production of LCD panel in Korea. This joint venture will be called S-LCD.

Toshiba

In 2011, the group also partnered with the companies Itachi, Toshiba and INCJ for the pooling of LCD panel production resources.

Google

Previously, Sony had also set up a partnership with Google in order to install the Android application on the various mobile phones produced by the group and its subsidiary Sony-Ericsson. Ericsson finally bought out Sony's stake in the joint venture in 2011, ending their partnership.

77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500
Positive factors for Sony shares
The factors in favour of a rise in the Sony share price:

First of all, Sony's brand identity is of course one of its main strengths. Indeed, this corporate brand is old enough to have taken root in the minds of generations of customers. Although the brand has recently experienced a decline in overall popularity, it remains one of the best known in this industry. Of course, this popularity ensures Sony an interesting and almost guaranteed success when its new products are released. Of course, this also allows it to benefit from a strong ability to penetrate certain markets or to set up interesting partnerships.

Another advantage of this company also concerns the projected growth in the consumer electronics market. Indeed, for a few years, this sector of activity knows a very interesting growth which allows Sony to sell more products. But that's not all. Indeed, analysts specializing in this market are also planning to continue this growth for the months and years to come. However, Sony is particularly well placed to take advantage of this increase in needs and demand. Indeed, being one of the largest companies in the world in this sector of consumer electronics, Sony could offer even more products that meet the needs of the market and therefore generate significant profits. This group also has sufficient production and innovation capacity to respond effectively to the increase in this demand. It should also be noted that the group recently completely revised its organization and hired experienced collaborators, particularly in the digital field, who can optimize the overall potential of the company and growth forecasts.

Finally, the last advantage of the Sony group concerns its strong ability to position itself in emerging markets. Indeed, the company is particularly well established in China and India as regards the Asian market but also in Brazil and Russia which are two other booming markets at present. All of these regions represent no less than 40% of the world's population, a very large customer and prospect base. In India, Sony is already enjoying great success thanks to its past investments in the cinema and music sector. Today, the group's objective is to double its revenues from these emerging markets.

Negative factors for Sony shares
The factors in favour of a drop in the Sony share price:

First, investors in the stock market are disappointed by the recent results of this company, whose revenues have been declining for several years now. This concerns more particularly certain specific divisions of this group such as the electronics, games, images and financial services sector. The current crisis mainly affects the market in the United States and Japan with sharply declining revenues. The buying strategies on this stock thus tend to fall for fear that the situation will continue.

Another negative point for this company with an international focus concerns the lack of proximity to the production units in the marketing areas. Indeed, more than 60% of the annual production is still made in Japan and must then be exported to other countries. This of course poses a problem with regard to transport costs which reduce the margins and do not make it possible to implement a reduction in selling prices in a highly competitive sector.

This brings us of course to the last fault of this company which concerns precisely the very important competition of this sector of activity. Indeed, the electronics sector, which has experienced very strong growth in recent years is attracting more and more large companies. Also, Sony must be more and more competitive and innovative in order to face competing offers and maintain its positioning.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

What type of activities does the Sony Company engage in?

The Sony Company is specialised in general technological activities but the products it creates, develops and markets can be separated into different sectors which are important to know. Sony is currently present in the following sectors: IT, electronics, audiovisual, telephone communications and in particular mobile telephones, as well as the video games and musical sectors.     

Where and how are the Sony shares quoted?

Currently, and in fact since this company first entered the stock market, Sony shares have been quoted on the Tokyo stock exchange in Japan. This quotation is directly and continuously updated in real time during the opening hours of this stock market. We also note that the Sony Company share price is included in the renowned Nikkei 225 stock market index which is the major Japanese index and is composed of the top 225 companies of this country.    

Does the Sony Group exercise lobbying activities?

The Sony Group exercises lobbying activities through the European Union institutions. This company is in fact represented by a specialised cabinet that has been registered since 2008 with the Registry of transparency of Interests with the European Commission.

77% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500