Sony is having to face up to the fact it has to stop over promising and giving rosy forecasts.
According to Reuters the troubled company has an institutionalised problem that it’s executives keep include noticeably rosy forecasts even though doom is on the horizon with nasty pointy teeth.
The company has set aside up to $1 billion this fiscal year to cut staff. But some parts of the company still cling to the old habits of over-promising.
Newly appointed, no-nonsense executives are hinting that, in time, the divisions behind products like Bravia televisions and Xperia smartphones will be dragged kicking and screaming to reality.
Sony missed the forecasts it set for its TV and smartphone divisions last year as it struggled to compete with more nimble rivals. This year, it is still targeting sales growth of 20 to 30 percent for both divisions, a rate that is several times the average expectations for those markets.
Atul Goyal, an analyst at Jefferies in Singapore told Reuters that when Sony forecast profit in each product category, it worries me," said adding it was possible that Sony's smartphone and TV sales might actually fall by 20 to 30 percent instead.