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Will Sony's (NYSE: SNE) New PC Add Muscle? - Analyst Blog
By: Zacks Investment Research   Wednesday, July 08, 2009 1:22 PM

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To compete with large vendors in the rising netbook PC market, Sony (SNE) plans to launch its new VAIO W series laptop, currently meant for the Japanese market. The new netbook is expected to hit stores in August with a selling price of around ?60,000 ($629), according to some sources.

Sony has declined to comment on the product and has not provided any specific pricing details or expected sales for the new netbook model. It expects to increase VAIO PC sales from 5.8 million units in fiscal 2008 to 6.2 million units in fiscal 2010.

The new Sony netbook is built on Microsoft’s (MSFT) Windows XP operating system and based on Intel’s (INTC) Atom processor. In comparison to 1,024-by-600-pixel displays that are used in other netbooks, the new VAIO series features an LCD display with a resolution of 1,366-by-768 pixels. It also consists of 1GB of RAM memory and a Wi-Fi module.

Netbook PCs help keep users connected while traveling. The new VAIO PC provides portability, convenience, and is much more affordable than a traditional notebook or desktop PC.

However, in comparison to Sony’s previous VAIO P series netbook model – an ultra-slim netbook launched in early 2009, the new W series netbook is bulky and less trendy. The new model also features the same netbook configuration as its earlier model, meaning that there is nothing new which could attract users.

Although Sony expects the new design and high-resolution display to make it easier for the company to penetrate the netbook segment and gain a presence in the market, we see no good distinguishing feature in the model that could help it compete with other existing players. With no unique qualities, it is less likely that the new model will be well accepted.

Sony faces tough competition from other large players in the netbook market with much larger market share.


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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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