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“CEO Yoshida’s message suggests that Sony will focus on profit growth with diversified businesses,” said analyst Junya Ayada at JPMorgan Securities.
Sony’s portfolio may become increasingly complex, but it still posted two consecutive years of record profits until March 2019, said Ayada.
Having technology with diverse applications can also be beneficial in times of uncertainty, said Atsushi Osanai, professor at Waseda University Business School.
“The next big thing for the sensors may be in autonomous driving technology, but it’s important to explore other applications,” said Osanai.
Yet others have said that it is difficult to take into account the potential of the sensor software subscription service, as it could take years for such a business to become an engine of Sony’s overall growth.
“The number of sensors used in factories and retailers is likely to be low compared to those in the smartphone market of over a billion units,” said analyst Hideki Yasuda at Ace Securities. (Report by Makiko Yamazaki and Noriyuki Hirata; Editing by David Dolan and Christopher Cushing)