Sony Electronics  

With the recent completion of both another Consumer Electronics Show and MacWorld, coupled with the obvious prominence of Sony and Apple at both of these events, I’ve been thinking more and more lately about the similarities and the differences between the two companies and our brands. 

Although a generation apart, both companies were co-founded by the dynamic combination of engineering genius (Massaru Ibuka in Sony’s case and Steven Wozniak for Apple) and marketing savvy (Akio Morita and Steve Jobs, respectively).

Certainly, there is a fair amount of envy that goes in both directions.  In fact, I can recall a reference by Steve Jobs some years ago in the press where he mentioned his “VAIO Envy,” and I noticed a reference to the Sony VAIO TZ notebook line while he was introducing the MacBook Air laptop at MacWorld.  Just a few years ago, he also invited our then global president, Kuni Ando, to join him onstage at the show to discuss Sony’s capabilities in high-definition video and our elegant camcorders. 

Meanwhile, of course, many of us at Sony were impressed and impacted by Apple’s moves in the digital audio space with their product design, operating software and music industry relations to capture the lion’s share of the personal audio market in the U.S.  I’m glad that Sony has come finally come back with our open platform, Windows Media-based Walkman video players (phasing out CONNECT) with well designed devices that are getting us back in the game (including strong sales during the recent Holidays).

Clearly, there is a mutual admiration society as far as hardware design and elegance is concerned. When it comes to software, Apple does a marvelous job.  But Sony is also putting more emphasis on software design, integration and architecture. Recently, Sir Howard Stringer, our global chairman and chief executive, has led a movement to have software engineers integrated into our product development and design teams from the outset. And one of our leaders in this regard is a former Apple-ite. 

As far as the iPhone goes, it is very cool indeed.  But it’s too bad that more American consumers are not exposed to Sony Ericsson Walkman and Cyber-shot phones. In Europe, where GSM is the prevailing standard, Sony has significant market share for high-end mobile phones, which include an array of very sexy products. Our former U.S. electronics business head, Dick Komiyama, who is now the president of Sony Ericsson, has already been quoted in The Wall Street Journal as saying he plans to be much more aggressive in this country going forward. 
 
Another initiative both companies are approaching from different perspectives is Internet television.  You’ve got the Apple TV and Sony’s BRAVIA Internet Video Link.  Apple’s is another component that requires a computer to get things started.  Sony’s is a clip-on module that fits neatly (so you don’t see it) on the back of the television, which streams free Internet content and requires no PC.

A fundamental difference between us, of course, is that Apple is primarily focused on just a few product categories: computers, phones and personal audio players. Sony, on the other hand, is in the hundreds (with thousands of SKUs), ranging from televisions, Blu-ray Disc and DVD players, camcorders, cameras and computers  to audio devices, in-car entertainment, accessories, optical drives, electronic book readers, and a host of professional equipment for broadcasters, the motion picture industry, the health care profession, security applications and more…not to mention mobile phones and videogame consoles from our sister companies.   
 

Back to similarities…we both have a growing retail presence here in the U.S.  But while Apple focuses primarily on their stores, which are pretty nice (including how they showcase our BRAVIA televisions), we not only have the Sony Style shops, which are getting better all the time with a greater assortment of products,  but also put a lot of resources behind our online sonystyle.com channel, in addition to the nation’s largest network of authorized dealers, who combine to handle the vast majority of our sales. 
 
We have also both more than dabbled in the entertainment industry, although with Sony Pictures Entertainment and Sony BMG Music, I’d say we’ve gone quite a bit further beyond the dabbling stage. 

It seems to me that the legions will live on in both cases…and not only the competition but also the opportunities for collaboration (e.g. HD, Blu-ray, others) will continue for many years to come.  When I first joined Sony, Apple was a big user of Trinitron monitors with their desktop PCs. And, as noted by the press during the battery recalls of a couple of years ago, our lithium-ion batteries can be found in their notebooks. 

Both companies enjoy two of the world’s strongest brands; both make premium, high-quality products; both innovators; and both have millions of passionate consumers around the world.

I’d welcome your thoughts on the matter.