Sony logo
Sony logo

Sony, One of the greatest companies to make portable radio, compact disc, PlayStation, walkman and many other outstanding gadgets revolutionized the world of technology in the 20th century, but have you ever wondered how they started their company and whether how can they convert a capital of $ 530 into a massive $ 40 billion? So let's look at that.


On May 7, 1946, after World War II, Masaru Ibuka started a radio repair shop on a bomb that had damaged a Shirokiya department store building in Tokyo's Nihonbashi district. The next year his colleague Akio Morita joined him and they founded a company called Tokyo Tsushin Kogyo Tokyo Telecommunications Engineering Corporation. The company had $ 530 in capital and a total of eight employees. The company built Japan's first tape recorder, called Type-G. Japan's first reel-to-reel tape recorder, the G Type. The recorder was identified as a product for government use. So, G means to manage in "G Type".
Users find the recorder neatly organized, with the top-notch transportation system and recording front controls. Bringing the handles to both sides made the unit 35 kg relatively easy to carry.

In the early 1950s, Ibuka was traveling to Asia and heard about Bell Labs' invention of the transistor. He convinced Bell to license the transistor technology to his Japanese company. While most Japanese companies are researching the transistor for its military applications, Ibuka and Morita looked to apply it to communications. Although American companies Regency Electronics and Texas Instruments built the first transistor radio as a joint venture, it was the Ibuka company that made them successful for the first time. It was the first time a transistor was used for non-military operations. In 1955 the company built the TR-55 transistor radio and it was first manufactured in Japan. The use of transistors instead of vacuum tubes allowed the device to be smaller than the previous radios and allowed them to be the first truly portable radios from Japan. The use of transistors instead of vacuum tubes allowed the device to be smaller than the previous radios and allowed them to become the first truly portable radio from Japan.


In 1958, the company changed its name to Sony. The name "Sony" was chosen for the brand as a mix of two words. One is the Latin word "Sonus", which is the root of sonic and sound, and the other is "sonny", a common term used in 1950s America to call a boy. In the 1950s, "the sons of Japan", was a word that meant intelligent and presentable young men, regarded by Sony's founders Akio Morita and Masaru Ibuka as their own.


Sony played a key role in Japan's development as a strong exporter during the 1960s, 1970s, and 1980s. Sony sells 5 million units of portable radio transistors that are very popular in America. Sony's decision to shift its focus from the domestic to the international market occurred when Morita visited Philips, a Dutch company. He was inspired by Philips and he wondered if a company like Philips could succeed in the international market, so why couldn't they. He directed Sony to begin concentrating on producing exports for the international market. This is the beginning of Sony's global recognition.

Sony Corporation of America (SONAM) was founded in 1960 to expand Sony's marketing activities in the United States. This is something that no other Japanese electronics company has dared to try. In May 1960, Sony launched the first direct view of portable TV worldwide, TV8-301 since Sony launched many other TVs in the 1960s.

Sony started many new businesses in the 1970s. In 1971, Masaru Ibuka handed over the presidential position to his co-founder Akio Morita. Sony started a life insurance company in 1979, one of many of these businesses. Due to the global recession in the early 1980s, Sony had to cut prices for its products. Sony's revenue has dropped. One analyst said, "The best days of the company are behind it." At that time, Norio Ohga became president. He encouraged the development of Compact Disc in the 1970s and 1980s. In the 1980s, Sony acquired itself in the media business. They bought CBS records in 1988 and pictures in Columbia in 1989. In 1984 Sony launched the revolutionary PlayStation in Japan.


In 2000, Sony began the release of PlayStation 2. Nearly 155 million PlayStation 2 units were sold, making it one of the best selling consoles in the house. The alternate PlayStation 3 and PlayStation 4 are also released. In 2001, Sony created Sweden with Sony Ericsson mobile phones, Later, Sony bought the Nokia part of the Sony Ericsson phone business and released the Sony Xperia S in 2012. After many other variants of the Xperia series was also released. Recently, Sony Corp reported that Sony's operating and net profit was reduced primarily due to the collapse of the smartphone, TV and laptop businesses.

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