This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Can Sony Reverse Declining TV Sales With Bravia Android Smart TVs?

NEW YORK (TheStreet) -- Sony (SNE) is confident its television business will turn a profit this year after a decade of losses, but industry trends suggest it may be easier said than done.

Masashi Imamura -- the head of Sony's new TV unit, which will become a separate subsidiary of Sony on July 1 -- told the media on Monday that he was "confident" the company's TV business would grow stronger as a standalone company.

Imamura said his company could better respond to market fluctuations after cutting fixed costs last year and handling expenses at distribution companies in the future.

Transformers Engine Cranks, but Still Won't Start

Audi '15 A8 Is a 868-Mile-Range Tesla-Killer, and Diesel Is the Secret

Paychex, Constellation Brands Report Earnings as July Begins

Imamura's confidence is a welcome change for Sony's struggling TV unit, but industry trends signal that diminishing TV sales may not be exclusive to Sony.

IHS Technology, which tracks sales trends in the television industry, was unavailable to comment on the decline of TV sales over the past decade, but did point to a study it released earlier this year.

The study shows that the U.S. television market experienced a 9% loss in unit sales last year due to low demand.

Low demand was attributed to market saturation. Consumers have little interest in buying new TVs after upgrading to high-definition, flat screen models less than 10 years ago.

U.S. TV shipments in 2013 declined to 34 million units, compared to 37.5 million units in 2012, the report stated.

"The TV market in the United States has reached a point of saturation following a period of huge growth in years past, especially as the flat-panel-TV craze set in," IHS TV analyst Veronica Gonzalez-Thayer explained in the report. "As a result of the market's maturity, and also because of lingering uncertainties in the economy, American consumers have been less eager to rush out and buy new replacement TV sets."

This finding suggests that although Sony is treating the problem as company-specific, underlying trends in consumer behavior could be the main culprit of declining U.S. television sales.

A bright spot in the report, however, shows that there has been an increase in the shipments of large "smart TVs," which have features such as Internet connectivity and full high-definition 1080p resolution.

But can Sony's TVs compete more broadly?

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,113.54 +61.81 0.36%
S&P 500 1,983.53 +9.90 0.50%
NASDAQ 4,456.0160 +31.3120 0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs