Strong yen prompts Sony to lower production costs
While it's true that news involving global financial markets is about as exciting as an English Patient theme park ride, we managed to make it all the way through a recent Reuters article detailing ... something about dollars and yens. Oh, right. At a Taipei News conference, Sony laid out its strategy for dealing with the negative impact the strengthening yen was having on profits, particularly those gained from exports.
The manufacturer explained that it would lower production costs and, in the short term, accept a greater number of product orders. With three quarters of its revenues earned internationally, Sony's profits aren't best pleased when the weakening dollar takes a bite out of exports. Reuters notes that for every one yen rise against the US dollar, Sony loses approximately $59 million. We bet that's keeping somebody awake at night.
