Japanese TV Brands Hit By Financial Losses
It hasn't been a good year for Japanese TV makers. Nine months ago, it was reported that Panasonic, Sony and Sharp Corp were expected to lose up to US$17 billion collectively in 2012 with regards to their TV businesses, and it looks like that downward trend isn't likely to improve anytime soon. So severe are the conditions, in fact, that it even prompted one of the country’s major TV brands to admit that it fears for its future.
All three TV manufacturers, including Sony, Panasonic, and Sharp, posted dismal Q2 results for their TV sectors according to a recent report filed by HDTVtest. The latter is one of the biggest hit victim, who reportedly stated that the company is contemplating if it should stay in the business next year. Sharp's losses might extend to approximately US$6.9 billion when its fiscal year ends in March 2013, compared to initial projections of US$3 billion made months ago. The AQUOS maker admits its problems isn't due to falling TV prices alone, but unsuccessful investments made in line with its LCD panel business had a part to play as well.
The Japanese firms ascribed their poor financial predicaments to dipping global costs of flat-screen TVs, a strong Yen, and fierce competition from South Korean companies like LG Electronics and Samsung. For that matter, things are looking grim for Panasonic too with expected losses in the region of US$9.5 billion by the end of its fiscal year. This is a sharp contrast to earlier predictions of a US$618 million profit. Panasonic's woes can be attributed to restructuring overheads which turned out to be eleven times higher than original estimates for its television arm.
Sony's losses, posted at US$195 million for the recent quarter, are comparatively lesser than its Japanese competitors. Besides, this figure is considerably smaller than the company's first quarter results which resulted in a loss of US$309 million. Sony's overall business retained its buoyancy thanks to its mobile arm which generated an estimate of US$3.82 billion in sales this year.