# Sony to Raise Nearly $4 Billion, Ramp Up Sensors Business to Anchor Turnaround



## Canon Rumors Guy (Jul 2, 2015)

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Japan’s Sony Corp plans to raise nearly $4 billion via new shares and bonds to plough into image sensors as it reinvents itself as a niche component maker, pulling back from consumer goods like TVs that dragged it into losses.</p>
<p>In Sony’s first new share issue in 26 years, the firm said on Tuesday it expects to raise 321 billion yen ($2.62 billion) from a public stock offering after a rally that has seen its market value double in a year. It will raise a further 119 billion yen from a convertible bond issue to fund a boost in sensor output capacity at its advanced plants in Japan.</p>
<p>Worth close to a tenth of its current market value, the share issue provides the clearest signal yet that Chief Executive Kazuo Hirai is prioritizing the sensor business to anchor Sony’s turnaround. The firm has long been plagued by losses in branded goods like smartphones, hit by fierce competition from both cheaper rivals in Asia and industry giants like Apple Inc and Samsung Electronics Co.</p>
<p><a href="http://www.reuters.com/article/2015/06/30/us-sony-issue-idUSKCN0PA0EG20150630" target="_blank">Read more…</a></p>
<p>Photo Credit // REUTERS/YUYA SHINO</p>
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## neuroanatomist (Jul 2, 2015)

Canon Rumors said:


> Japan’s Sony Corp plans to raise nearly $4 billion via new shares and bonds to plough into image sensors as it reinvents itself as a niche component maker, pulling back from consumer goods like TVs that dragged it into losses.



Are cameras 'consumer goods'?


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## Keith_Reeder (Jul 2, 2015)

So selling sensors to Nikon is going to support a $40 billion business?

_Yeah, right_.

Bye-bye, Sony...


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## AcutancePhotography (Jul 2, 2015)

It will be interesting to see what Sony will be coming out with.


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## brianftpc (Jul 2, 2015)

40% of all image sensors produced in 2014 were made by Sony so.....Id say they sell them to more companies than just Nikon


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## 1982chris911 (Jul 2, 2015)

Keith_Reeder said:


> So selling sensors to Nikon is going to support a $40 billion business?
> 
> _Yeah, right_.
> 
> Bye-bye, Sony...



Well in the current Economic Situation and Sony's big problems as a Company that is sth. I would fear more than lack of DR when switching to a Sony system ...


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## sdsr (Jul 2, 2015)

Keith_Reeder said:


> So selling sensors to Nikon is going to support a $40 billion business?
> 
> _Yeah, right_.
> 
> Bye-bye, Sony...



I guess you're unaware that Sony make the sensors for the cameras in the newest iphones and Galazy phones, the sensors in some Canon cameras, the sensors in most Olympus cameras and, apparently the sensor in the forthcoming top-line Fuji (not to mention sensors used in cars and all manner of industrial uses).


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## 1982chris911 (Jul 2, 2015)

sdsr said:


> Keith_Reeder said:
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> > So selling sensors to Nikon is going to support a $40 billion business?
> ...



Pentax too ... but even if Sony would make all image sensors in the world that would not be more than half its business ... and many things in the rest of the company are not exactly as nice as the sensor business e.g. TV, entertainment or real estate ... Sony just sold their office tower in NYC two years ago bc. it desperately needed cash (https://en.wikipedia.org/wiki/Sony_Tower) much of the mobile entertainment market, which once nearly exclusively a Sony business is now occupied by Apple (just remember the walkman, the portable CD player) etc ... all that is gone


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## docsmith (Jul 2, 2015)

It will be interesting what this actually means. "Investment" can be a lot of different things. They could focus on a specific segment of the market (phones, security, car cameras, etc). They could focus on making the same technology more cost effectively (camera phones). Or they could focus on new tech that would be applied across the board. 

My quick guess is that cameras in cars is a growth market and will see some attention. Durability of the sensor will likely be paramount there. Camera phones has likely matured as a market, but still represents a very large volume of sensors per year, so cutting costs while improving tech will likely be the balance there. 

Then there are us photographers and videographers. I am sure we'll see some benefit, hopefully is better tech, but most likely in cheaper sensors.


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## Mt Spokane Photography (Jul 2, 2015)

In a competitive market, if you have a advantage, you need to jump on it, because it wont last forever. 

I think they are doing the right thing, and I believe in their vision of sensors being used in many more applications. digital cameras are just a drop in the bucket compared to whats coming.

I'd say that Sony is currently unable to meet demands, and it takes big bucks to startup new state of the art fabs. 

Good for Sony. I still am not buying their cameras because of their lack of commitment to customer service. But - by selling sensors wholesale to customers who have real leverage and can demand customer service, the consumer will win. 

I suspect that Sony is concerned about Samsung much more than Canon. Samsung is a company that may move aggressively into the sensor market as they see that phones and tablets are less of a growing market. None of the big electronics companies are stupid, they see Sony with a near monopoly, and want a share. By upgrading their capabilities, Sony can keep a step ahead for at least several years.


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## Don Haines (Jul 2, 2015)

sdsr said:


> Keith_Reeder said:
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> 
> > So selling sensors to Nikon is going to support a $40 billion business?
> ...


Yup....

Cameras are a small part of the sensor market.... and don't forget security, biometrics, medical, televisions, and the most obvious answer (if you are driving behind it) trucks!


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## Mt Spokane Photography (Jul 2, 2015)

Don Haines said:


> sdsr said:
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> > Keith_Reeder said:
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I think that the applications for sensors are almost unlimited at this point, inventors and small startups will make a few more billionaires over the next 10 years.


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## 1982chris911 (Jul 2, 2015)

Mt Spokane Photography said:


> Don Haines said:
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> > sdsr said:
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 if Sony can get access to the military market especially in the US there should be some very intersting things in regards to true (optical) stealth Applications


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## Mt Spokane Photography (Jul 2, 2015)

1982chris911 said:


> Mt Spokane Photography said:
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Unless things have changed drastically, the military bans use of foreign parts in their gear. (Europe is ok). I worked a few years as a Engineer designing and working with suppliers. We were prohibited from using anything but US manufacturers. foreign companies could setup a US factory, and that was OK. The reasoning is obvious, it easy to cutoff supply lines that are many thousands of miles away. Even commodities like clothing are US sourced. This can mean that the technology is not the latest and greatest, but it also means that supply problems are simplified, and it usually means that quality and reliability are better.


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## 1982chris911 (Jul 2, 2015)

Mt Spokane Photography said:


> 1982chris911 said:
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No longer ... Or they produce other Apple IOS devices for them than for the regular customer line:
http://venturebeat.com/2013/03/21/u-s-army-orders-120k-ipads-100k-ipad-minis-200k-ipod-touches-and-210k-iphones/


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## Mt Spokane Photography (Jul 2, 2015)

1982chris911 said:


> Mt Spokane Photography said:
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Are Apple devices considered to be Military? Can you shoot them? (pun intended)  

I bet that there is a proviso somewhere in the contract that Apple show them a plan for US manufacturer if they are considered critical. Apple has mentioned setting up US manufacturing, but did not say why or what. Since the components come from China anyway, it might be silly to do that.


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## 1982chris911 (Jul 2, 2015)

Mt Spokane Photography said:


> 1982chris911 said:
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Well if it tells you what to shoot at ... I guess its military ;-) anyway I thought they also wanted to use PS2/3 style controllers for the drones ...as that is much better for the young guys who fly them ... no transition time to get used to other button combination to cheat a bit ... GAME OVER !!! ;-)


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## 1982chris911 (Jul 2, 2015)

Going back to use of image sensors what I mean is this here ... and you need really a lot of sensors for that if you wanna use it on tanks trucks people etc. from every angle : https://en.wikipedia.org/wiki/Active_camouflage


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## Don Haines (Jul 2, 2015)

1982chris911 said:


> Going back to use of image sensors what I mean is this here ... and you need really a lot of sensors for that if you wanna use it on tanks trucks people etc. from every angle : https://en.wikipedia.org/wiki/Active_camouflage


now where did I park that tank???? Come on guys! Anyone remember where we parked it????? DARN ACTIVE CAMOUFLAGE!!!!!

There are an awful lot of creative people on this planet... who knows what the next "killer application" will be.... hopefully it will not be a T-800


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## neuroanatomist (Jul 2, 2015)

Don Haines said:


> There are an awful lot of creative people on this planet... who knows what the next "killer application" will be.... hopefully it will not be a T-800



Introducing SkyNet® by Sony.


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## Arkarch (Jul 3, 2015)

neuroanatomist said:


> Don Haines said:
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> > There are an awful lot of creative people on this planet... who knows what the next "killer application" will be.... hopefully it will not be a T-800
> ...



Lol +1... Is that why there is a StarVis logo inside the terminator eye?


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## 1982chris911 (Jul 3, 2015)

I just forgot to mention that there is also a second non military thing that would need lots of image sensors of high quality (probably more than the entire DSLR Camera market) and that is autonomous driving cars ... imagine that each car needs a least a couple of sensors and in 10-15 years autonomous driving will be pretty standard at least in luxury level cars ... the newest generation of road legal cars in europe have already image based headlights to selectively illuminate persons standing on the side of the road and panorama cams for parking ... so a future car will certainly need a lot of image sensors if you add more systems like this


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## RGF (Jul 9, 2015)

I think Canon should in invest in Sony Sensor project. To make sure they have the latest technology. That way they could continue with their sensor technology and leverage the learnings from Sony. Best of both worlds


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## Mt Spokane Photography (Jul 9, 2015)

RGF said:


> I think Canon should in invest in Sony Sensor project. To make sure they have the latest technology. That way they could continue with their sensor technology and leverage the learnings from Sony. Best of both worlds



Canon should invest in their own sensors, having just one sensor company is not good. Of course, there is ON semiconductor/Aptina, but everyone has got to be worrying about Samsung. Canon could buy ON semiconductor, but I don't think they want to compete in the cell phone sensor market.


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## Bennymiata (Jul 9, 2015)

The worldwide market for sensors in cars will be around half a Billion + a year within a few years.
Most cars will have between 5 and 10 cameras each, maybe even more.
Add in the growing security market, and there will be a need for billions of sensors every year.

I reckon it could be a good business, and Sony is very well placed to grab the lion's share.


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## RGF (Jul 10, 2015)

Mt Spokane Photography said:


> RGF said:
> 
> 
> > I think Canon should in invest in Sony Sensor project. To make sure they have the latest technology. That way they could continue with their sensor technology and leverage the learnings from Sony. Best of both worlds
> ...



Not suggesting that canon give up on their own sensors, rather that the invest in Sony and get to use some of Sony's technology that will help them. Best of both Canon and Sony. That would be a GREAT day


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## PerfectSavage (Jul 12, 2015)

sdsr said:


> Keith_Reeder said:
> 
> 
> > So selling sensors to Nikon is going to support a $40 billion business?
> ...



That is mostly true, however that sensor business you just outlined isn't "new opportunity/new markets" as much as current market thus if Sony hasn't been able to post a profit with the OEM products/market you just detailed, then the question is how big is the expansion market it sees ahead and what does it need to make money and pay back investors...40% of an expanded market, 67% of the same market...TBD? ...and clearly the analysts and stock market hasn't seen it otherwise it's valuation wouldn't be so shit and near bankruptcy multiple times the past few years.


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## George D. (Jul 12, 2015)

Canon Rumors said:


> Japan’s Sony Corp plans to raise nearly $4 billion via new shares and bonds to plough into image sensors as it reinvents itself as a niche component maker, pulling back from consumer goods like TVs that dragged it into losses.



They transferred personnel from the LED backlit TV to the backlit sensor... Major drag (into new losses). If Canon starts to make TVs I wonder whose technology they will borrow. ;D

Meanwhile I don't suppose this rumored Canon Foveon turns up in the 1DXII/5D4. If there's one "new technology" I'd bet on this one.


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