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Credit agency Fitch has downgraded its views of both Sony and Panasonic, dropping the two tech giants to “junk” status. Which is business speak for “don’t buy shares in these two as they could go broke.”
The downgrade note claims the two companies have suffered such severe damage to their reputations of late that it’ll be hard for them to return to their former glories, with Sony’s particular problem being its continuing difficulties in convincing people to buy Sony TVs in the face of astonishingly aggressive competition from the likes of Samsung and LG.
Fitch doesn’t believe Sony will be forced out of business by its bankers, though. It has other money-making divisions, so could still turn things around before the bailiffs turn up to confiscate the boardroom chairs.
And the use of the word “junk” doesn’t mean either firm is worthless just yet. It’s a technical term meaning it’s considered a risky investment that some clients ought to avoid. [Techradar]
So I should expect my credit level to be downgraded due to my massive junk?
Never really rated Panasonic. But for Sony, the direction their headed is a real shame. Sony used to be a brand that made DURABLE yet AFFORDABLE electronics. I still remember T.Vs and Radios that lasted past 20 years and are still in my father’s house till this day. Now they want to be like apple, trying to be “premium” and massively pricing themselves out of the market for goods that barely last 2 years. A real shame.
I think maybe 20 yrs ago that was true but since late 90′s early 2000 Sony have always been more expensive than the rest of the mainstream brands but they were quality products nice design and very innovative which justified their price
Speaking as someone who has owned gear from both Sony and Panasonic (and Technics back when!) since the 1970s, Panasonic gear has and still is way more reliable and robust than Sony. Sony are innovative and superb at miniaturisation (their NEX cameras are an example of this), but literally everything I have ever owned of theirs has malfunctioned without any effort on my part. (IE, no dropage.) Panasonic stuff is reliable because they designed and built their own ‘Panasert’ component assembly machinery and control all aspects of the production process.
It is sad they are in this position, but there are only two companies to ‘blame’: Apple and Samsung. Apple killed Sony with the iPod and Samsung have hurt them both with stylish innovative products – and of course, they make their own displays so get a head start on the latest flat panel products, from phones to TVs and monitors.
Mines a GH3 Santa. Thanks Bud!
Never had an issue with Panasonic stuff, even 10 year old TV’s and Video recorders! Utterly reliable gear IMHO.
Same cannot be said for Samsung, which appears to have a limited lifespan, even in the case of Fridges, which usually last for decades (Unless you have a Beko, which turns into an Oven before it finally expires)