Why Sony Net Worth Is Plummeting In 2022
Sony was once one of the most respected electronics companies in the world, but in recent years it’s been struggling to keep up with market leaders like Apple and Samsung. At first glance, Sony net worth of $36 billion doesn’t seem like much in comparison with those big names—but when you dig into the details, it looks far worse. For example, while other tech giants are on track to become trillion-dollar companies, Sony is set to have an estimated net worth of just $3 billion by 2022 (all data are based on projected sales figures). So what’s going wrong?
The reasons behind the fall
There are numerous reasons why we have predicted a plummet in Sony net worth by then. The main reason is that it seems that technology has come a long way and made people realize that they don’t need new stuff every year. In fact, if you look at some of the emerging technologies such as self-driving cars, 3D printing and alternative energy sources, they seem to be taking over major sectors of our lives. As such, we are not predicting a fall in demand for Playstation or Playstation 4 gaming console but that of all other devices coming from Sony. People do not see any great use for other products from what was once one of Japan’s biggest players.
The economic implications of the fall
For example, in 2014 and 2015, Japan was one of Australia’s largest markets for international education exports. But since 2016, that market has almost completely collapsed. According to statistics from Universities Australia, exports of higher education to Japan fell by nearly $850 million in 2015 and are likely to fall a further $400 million in 2016. If trade sanctions between Australia and Japan continue for any length of time and particularly if it looks like they will become permanent (rather than being limited just to certain products), then we should expect Australian universities that rely on Japanese students to close down courses or perhaps even campuses, as well as cutting staff numbers accordingly.
What are the ways in which Sony can be saved?
It’s no secret that in recent years, Japanese companies have been getting hammer by their global competition. Some of it is rooted in technology, where Japan simply hasn’t managed to keep up with its neighbors. For example, South Korea and China are way ahead of Japan when it comes to high-speed internet and development of smart phone technologies. Where South Korea has Samsung and LG Electronics, Japan just doesn’t measure up.
How can you mitigate your risk and benefit from this move?
While recent news of plummeting Sony net worth seems dire, there are steps you can take to mitigate your risk and benefit from their downward spiral. Currently, most investors are taking a wait and see approach. For example, despite dropping share prices over $3 in just a few days, many investors feel that if Nintendo is successful with its first new console in years and Apple produces another blockbuster quarter than both could add enough fuel to Sony’s core markets for it to rebound back upwards again. If that happens soon, many of those who held onto their shares may be able to ride out its current dive without too much pain.