Sony Makes More Money Selling Insurance Than It Does With Electronics

#Money

Fri, May 31st, 2013 12:00 by capnasty NEWS

When you think Sony, the first thing that pops to mind are its line of electronic gadgets. According to The New York Times' Hiroko Tabuchi, Sony "loses money on almost every gadget it sells." The real bread and butter of the company? Selling insurance.

Although Sony sells hundreds of products as varied as batteries and head-mounted 3-D displays, it so happens that Sony’s most successful business is selling insurance. While it doesn’t run this business in the United States or Europe, Sony makes a lot of money writing life, auto and medical policies in Japan.

Its financial arm accounts for 63 percent of Sony’s total operating profit last year. Life insurance has been its biggest moneymaker over the last decade, earning the company 933 billion yen ($9.07 billion) in operating profit in the 10 years that ended in March.

Sony’s film and music divisions, which produced hits like the Spider-Man movies and “Zero Dark Thirty” and recorded musicians like the cellist Yo-Yo Ma and the electronic music duo Daft Punk, have contributed $7 billion to the company’s bottom line over the last decade.

In that time, Sony’s electronics division has lost a cumulative $8.5 billion.

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