Originally Posted by ksec
I am sorry but where is the real meat in this story or... news?
It basically just retold the story of Apple Software history.
The article deals with more than just Apple. What I got from it was historical comparisons and contrasts between Sony and Apple as their software development evolved, highlighting the successes, failures, and different paths taken. It's had a major role in the success of Apple and how Sony has languished in recent years.
Sony has been blamed, I think, for more than its fair share of management and strategy mistakes, when much of their decline can be traced to fate and how evolving technologies, product innovations and customer tastes turn yesterday's stars into today's artifacts. Two decades ago, the model for the electronics leaders was to own both the technology and the manufacturing capability. The Japanese model of owning manufacturing internationally turned into a millstone for Sony with the rise of contract manufacturing capability in Third World and developing nations. So much costly plant and equipment in place led to Sony's reluctance to abandon or write down these operations and the products they made. Sony was a cutting edge maker of $5000+ flat screen TVs in 2004 - before the flood of cheaper sets from China and Southeast Asia knocked the pins out from what Sony expected would be massive profits.
We still need and buy TVs, entertainment systems, gaming devices, computers and the like, but the nature of the hardware business has fundamentally changed to one of razor-thin margins. Apple is one of the few hardware exceptions, developing products with unique functions that consumers perceive as offering greater value, therefore commanding higher prices and greater margins. Apple is not encumbered with plant and equipment that the next big game-changer could turn into white elephants.
So Sony is stuck, along with all the other veteran brands like Panasonic, Toshiba, Mitsubishi, etc. I would hate to see Sony diminish or disappear. Sony continues to be my hardware brand of choice for flat screens and audio systems (speakers excepted), just as Apple is our household's main source for gear that handles and distributes entertainment content home and away. Sony's product line is shrinking, however. We recently bought a 40-inch Sony HDTV to replace a 2004 flat screen that cost five times as much, but we were unable to find a 19-inch Sony for the kitchen. They've trimmed their TV line to 22 inches and larger, so we ended up buying a 19-inch Samsung that fit our space requirements.
Insofar as consumer electronics is concerned, there's no possible way that Apple could ever "turn Sony's business around" to generate margins remotely approaching what Apple makes from its existing products. I would hate to see Sony acquired by Apple. All the effort required to nurse such a sick puppy would only divert Apple management's attention from doing what Apple does best.