From DailyTech: Early 2014 saw Japanese electronics conglomerate Sony Corp. (TYO:6758) enter crisis mode. In an effort to stitch up is bleeding balance sheet, the company committed to committed to cuts of JP¥70B (~$580M USD) in spending and layoffs of 5,000 employees globally.
It also spun off the VAIO brand of personal computers and sold a 95 percent stake in the new firm to the Tokyo, Japan-based private equity firm Japan Industrial Partners Inc. (JIP). Worth an estimated JP¥40-50B (~$330-$410M USD). The deal gave JIP a 95 percent stake in the spun-off unit, with Sony retaining a 5 percent stake. The aggressive tactic allowed Sony to focus on moving its Xperia-branded smartphone, tablet, and wearable (e.g. smartwatch) offerings toward profitability.
Now Sony has an interesting new headache to deal with -- Vaio is entering the smartphone space, looking to compete with its former firm.
The working title of the company's first smartphone is "VAIO Phone" (model VA-10J). The VAIO Phone won't target the premium crowd. Rather its spec is designed to appeal to budget buyers. The phone first showed up on a B-Mobile webpage, a site of Japanese mobile device distributor Japan Communication Inc. (TYO:9424).
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