For more than 50 years Sony has always paid a dividend, but for the first time ever Sony has eliminated a dividend. With Apple and Samsung’s dominance in the smartphone industry, they have left no market share for Sony, who has announced this year that they expect to lose a lot in the mobile industry. Which is leading to an estimated $2.1 billion loss as the smartphone future is failing for Sony.
This is leading to Sony not being able to pay dividends, which are the payments that a corporation pays to its shareholders. This creates a whole new problem for Sony. At this point they are not only estimated to lose $2.1 billion but by not being able to pay dividends, Sony is also potentially losing credibility and the loyalty of their shareholders which can create a long term problem for Sony. At this point to reverse their current fortune, the pressure is on them to create an innovative product, which is notably different than any product current available in the electronic market.