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Where VAIO Goes?

By Korbin Lan
Published: Feb 07,2014

The first of Sony VAIO was introduced in 1997, after 17 years, due to the dramatic changes in the market, Snoy have to say goodbye to this brand bred by themselves. Once again, proved that Sony is really not good for the PC market, and after leaving Sony, where VAIO goes?

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VAIO is an acronym, the full name is “Video Audio Integration Operation”, can be easily understood its market position, the personal entertainment PC. The former president Nobuyuki Idei think the all PCs in market were all commercial purposes, lack of personal and home entertainment dimension, so he against all the odds, and work with Intel to produce desktop and notebook computers.

In the first few years, VAIO was indeed very successful in the market to establish their own unique and distinct position, even hailed as best chance of company to challenge Apple.

But with the rise of smartphones and tablet PCs, PC market has been severely occupied, and personal entertainment applications was comprehensive be replaced. PC in addition to traditional business applications and heavy gamers, but hard to find another way out, both of which are not sony's expertise.

Bear long-term losses, can’t find countermeasures, Snoy eventually had to sell VAIO, So from now on, VAIO on their own.

According to the agreement Sony signed with Japan Industrial Partners, Inc (JIP), Sony will be holding 5% shares of the new company, also participate in the discussion of the new company set up process, and has been responsible for the current product sales maintenance services. Therefore, at the beginning, VAIO can get help from Sony, but after the establishment, VAIO will be nothing to do with Sony, at least in finance.

There is one issues worth thinking, why Sony not sell VAIO to other PC companies such as Lenovo or Asus? set up a new company really is a better choice?

Except Lenovo, the major PC companies are making the transition, Dell has been Out of stock to revamp business , Acer develop cloud technology, ASUS focus on the development of deformation , HP has been wandering in the sale of the PC business decision, these show the PC market is definitely not optimistic, it will be a very difficult task for VAIO to become an independent company.

But the PC market is still controversial, like HP's hesitation, PC is not without opportunity, both in the business and entertainment still has room for development, but the new market segment has not yet fully formed, will take some time, and maybe it is a reason for Sony to set VAIO into a new company.

You may curious about JIP, it was founded on June 2000 and is based in Tokyo, Japan, pecializes in investing in turnaround, buyouts, and carve-out investments. It primarily invests in the manufacturing sector, including food, distribution and services.

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