How Sony Is Turning into a Ghost in Japan and Around the World
I think Apple has made a great move by cutting Samsung out as one of their suppliers. Hopefully, Apple won't repeat Sony's huge mistake of keeping Samsung as their main supplier, and Samsung ended up betraying Sony. Nobody is buying Sony HDTVs anymore, everyone would rather get Samsung HDTVs since those are cheaper and almost as good. Do you guys think that after Apple cutting Samsung as one of their major suppliers, Samsung will be having a hard time trying to copy Apple products? Yes/No
"What was even worse is that during this period, Korea and Taiwan immediately welcome the exiting Sony techies with open arms. It was better than industrial espionageSamsung could openly 'buy' the technology that Sony had developed simply by rehiring their best and brightest."
The representative of a major European investor in Sony recalls his meeting with Idei very unfavorably.
"I came to Japan to talk to Mr. Idei about our growing concerns with Sony's direction. We had dinner together. I wanted to talk about profit margins; he wanted to talk about the wine we were having. He struck me as a clueless."
When the investor pointed out that Sony's operating profits on electronic products were roughly 2-4 percent and that Samsung was making similar products at a 30 percent profit margin, Idei hushed him by reportedly saying, "They make the parts for our products. We put them together. It's the difference between a steel maker and an automobile maker. We make the automobiles."
The investor apparently countered, "Well, I've got news for you-the people you laid off from the car plant are now working at the steel mill, and soon the steel mills will be building cars with your technology."
The warning was not heeded. It was 2004 when they last met, and while the iPod was increasingly becoming the to-go platform for mobile music and multi-media contents, Sony or rather Idei, didn't take it seriously.
I think Apple has made a great move by cutting Samsung out as one of their suppliers. Hopefully, Apple won't repeat Sony's huge mistake of keeping Samsung as their main supplier, and Samsung ended up betraying Sony. Nobody is buying Sony HDTVs anymore, everyone would rather get Samsung HDTVs since those are cheaper and almost as good. Do you guys think that after Apple cutting Samsung as one of their major suppliers, Samsung will be having a hard time trying to copy Apple products? Yes/No
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