Sony looking to improve profitability
Sony (SNE) has drawn up a three-year strategy outlining the company’s path from April of this year (the beginning of fiscal 2018) to March 2021 (the end of fiscal 2020). In this three-year period, Sony aims to generate high profitability across its various business areas, including electronics and entertainment. In the entertainment business, Sony is acquiring music publisher EMI for ~$2.3 billion to strengthen its licensing business, which licenses music content to the likes of Spotify (SPOT) and Alphabet’s (GOOGL) Google.
Sony eyeing $18 billion in cash flow
As part of its three-year plan, Sony aims to generate at least $18 billion in cash flow by the end of March 2021. The company expects its semiconductor business to be a major profit driver in the next three years.
Sony’s semiconductor products include image sensors. While smartphones have formed a big market for Sony’s image sensors, the company is looking to extend into the automotive market as well. Self-driving vehicles being developed by Waymo, Tesla (TSLA), Baidu (BIDU), and Ford (F) are being equipped with image sensors for safe navigation.