Today’s Wall Street Journal reports that Sony is developing a number of products because it feels threatened by Apple’s increasingly strong position in the handheld device space. Sony is working on:
- A smart phone that plays and downloads games.
- A netbook-like electronic book reader.
- An online media marketplace that sells songs and videos.
All of the above should sound very iFamiliar (read: iPhone-iPad-iTunes).
Problem is, in consumer electronics, this desperate approach rarely works. Sony is attempting to create new technology from a position of defense, a position of scrambling to catch up, a position of self-preservation. Further, its trying to build on a weakness: According to the same WSJ article, Sony Ericsson saw its global shipments fall 41 percent in 2009. Sony also recently lowered its outlook for its PlayStation Portable device. I believe the biggest reason Sony is struggling in those mobile categories is because Apple is hammering them with the iPhone.
Which is why it makes absolutely no sense to invest money, manpower and attention to create new products which will also get hammered by Apple.
In today’s mobile device space, Apple is dealing from a position of strength — it has not only terrific products but consumer evangelists — while Sony deals from a position of weakness.
Instead, Sony should be focusing on areas of potential strength: the PlayStation 3 console, digital cameras and camcorders, and its Bravia LCD television. In those three categories it’s possible to argue:
- Sony was once THE leader in each category, but has recently fallen in with a “pack” of leaders.
- Consumers acknowledge and accept Sony as a leader in those areas.
- Given a relatively happy consumer base in each category, it’s still possible for Sony to regain the leadership position in each.
Every manufacturer has areas of weakness and areas of strenghts. It is always easier to build on strengths than on weaknesses. But Sony is making matters even more difficult for itself by trying to build on weaknesses desperately.