Panasonic To Post $4 Billion Loss; Cuts 15,000 Jobs

February 4, 2009

One after the other, Japanese electronics companies are being hit by a double whammy: the sudden global consumer demand collapse and the appreciation of the yen versus the dollar.

Last in turn is Panasonic, which said today it expects a net loss of $4.2 billion for its fiscal year ending March 31, and plans to close 27 manufacturing sites (13 in Japan and 14 abroad) – about 12% of its global production facilities- and lay off 15,000 workers -  5 per cent of its global workforce – by March 2010. Half of the cuts will be in Japan.

Earlier this month, NEC announced it is cutting 20,000 jobs, while Hitachi, Sony, Toshiba and others have also recently announced thousands of layoffs.

In a press conference in Tokyo, Panasonic’s management did not say when they expect sales to eventually turn around.

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Panasonic To Post $1.1 Billion Loss; The First In 6-Years

January 28, 2009

After LG, Samsung and Sony, Panasonic is the next large consumer electronics company to be hit by plunging consumer spending.

Japanese newspaper, Nikkei, reported today that Panasonic will announce a whopping $1.1 billion loss for its 2008 fiscal year, ending in March; the first in six years.

The world’s largest maker of plasma television already announced this week that it will close three factories in Asia; two in Malaysia and one in the Philippines.

Last April, the consumer electronics company was predicting an annual profit for the same period of over $2 billion! And in November, Panasonic cuts its net profit forecast to about $300 million.

Panasonic, which changed its name from Matsushita last year, is in the midst of acquiring smaller rival Sanyo for $9 billion.

Earlier this month, Sanyo announced that it will break even for its fiscal year – also ending in March – amid deteriorating economic conditions.

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Sony And Samsung Feel The Sting Of The Worldwide Downturn

January 23, 2009

Sony and Samsung added to the uncertainty over technology product demand by reporting losses for the final quarter of 2008 amid slowing economic conditions.

Falling prices lead to red ink at Samsung

Falling prices lead to red ink at Samsung

Samsung Electronics on Friday posted its first quarterly loss since it began reporting quarterly finances in 2000. The company added that 2009 would be a difficult year.

Sony said late Thursday it had experienced its first annual loss in 14 years and that it would accelerate cost cutting

Both companies have dealt with falling consumer demand and soft prices for products such as LCDs and chips.

Samsung is the world’s largest manufacturer of flat-panel TVs, liquid crystal displays and memory chips. While its loss was relatively modest – about $14.4 million – the company said it had not escaped the global economic downturn.

In contrast of its other businesses, Samsung said mobile phones turned in a good quarter, rising to a record despite a 5 percent drop in the handset market. Nevertheless, trouble is ahead. The handset market in developed countries will decline by at least 10 percent in 2009 to 2004 levels, the company said.

Samsung has announced a major restructuring.

Sony, which makes Bravia LCD televisions and the PlayStation 3 game machine, said weak demand, the stronger yen and restructuring costs contributed to its loss.

The company will respond with a restructuring, doubling its cost-cutting target for the year.

Also reporting a loss on Thursday was South Korea’s LG Electronics.

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Posted by Mark Boslet

Nokia Handset Business Tumbles, Now Expects Global Mobile Market To Drop 10% In 2009

January 22, 2009
The Consumer Electronics Association hopes for a 2.1% in cell phone sales in 2009. Wishful thinking?

The Consumer Electronics Association hopes for a 2.1% in cell phone sales in 2009. Wishful thinking?

The world’s largest maker of mobile phones posted today a 69% drop in fourth-quarter profit of $751 million and a 19% revenue decline, still at over $16 billion.

During the last quarter, Nokia shipped 113.1 million handsets, down 15% over last year.

The mobile phone manufacturers are being hit hard in ’09

Competitors are not doing much better either.

Last Friday, rival handset maker Sony Ericsson posted a second-straight quarterly loss at $245 million. And Motorola also said it will report a fourth-quarter loss and slash an additional 4,000 jobs.

Meanwhile, Nokia lowered its outlook for global mobile devices sold in 2009, saying it now expects them to fall 10% compared to an earlier forecast of a 5% drop.

At the Consumer Electronics Show earlier this month, the CEA hoped for a 2.1% sales growth in mobile phones. That might be just wishful thinking at this point.

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Sony, LG Electronics Losses Blamed On LCD TV Sales Shortfall

January 22, 2009

Despite optimist predictions, consumer electronics companies might face a tough year ahead after all.

Sony reported today a record annual operating loss of nearly $3 billion. The first loss in 14-years and the second-ever since it started reporting earnings in 1961.

Meanwhile, Korean giant LG Electronics swung last quarter to a net loss of $490 million, the first in 2-years.

Both companies pointed to a hefty sales shortfall in flat-panel TV sales and an unfavourable foreign-exchange rate for their poor performance.

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IBM Tops Patent Record In 2008

January 14, 2009

IBM said Wednesday it won 4,186 U.S. patents in 2008 and became the first company to earn more than 4,000 in a year.

Big Blue also said it plans to increase by 50 percent the number of technical inventions it publishes annually in lieu of seeking patent protection. The company’s target is more than 3,000.

“Our goal is (to) help stimulate innovation as public investments in large infrastructure projects are being planned to boost global economies,” said John Kelly III, senior vice president and director of IBM research. “We also anticipate that adding additional transparency to the patent system will help tackle the continuing patent quality crisis, which is impeding inventors, entrepreneurs and companies of all sizes.”

Here are the 2008 patent leaders:
1. IBM                     4186
2. Samsung              3515
3. Canon                  2114
4. Microsoft               2030
5. Intel                      1776
6. Matsushita             1745
7. Toshiba                  1609
8. Fujitsu                   1494
9. Sony                       1485
10. Hewlett-Packard   1424

Data provided by IFI Patent Intelligence

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Posted by Mark Boslet

Skype Comes To Mobile Phones And Intel-Based Portable Internet Devices

January 8, 2009

Skype announced Thursday a lite version of its popular Internet calling software for mobile phones.

The software will work on Android phones running Google’s handset software and more than 100 Java-enable phones from makers such as LG, Motorola, Nokia, Samsung and Sony-Ericsson.

Can you Skype? The answer may be yes

Can you Skype? The answer may be yes

Skype called the software an updated beta version that benefited from earlier testing last year. For the first time it is available to users in the U.S.

The software lets users call other Skype consumers using their cellular handsets.

Skype also announced a 1.0 beta of its software for Intel-based mobile Internet devices.

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Posted by Mark Boslet

Music Companies Said To Be Considering Launch Of YouTube Rival

December 29, 2008

Major record companies are said to be looking at plans to launch a YouTube competitor

Rival site could be patterned after Hulu

Rival site could be patterned after Hulu

The report from the Financial Times said the site would be patterned after Hulu, the video site owned by NBC Universal and News Corp. Hulu shows television programs along with ads.

A variety of plans are under consideration, including a partnership with Hulu, a partnership with YouTube and a separate site.

Sony, EMI and Universal are negotiating with Google for the display of their content on YouTube while Warner has pulled out of talks on a contract with the search giant. Google owns YouTube.

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Posted by Mark Boslet

HD Television Vendors Line Up Behind Rival Wireless Standards

December 12, 2008

High-definition televisions sporting wireless connections have yet to hit most retail shelves, but vendors are tussling over standards for this latest consumer feature.

An outdoor, wireless, weatherproof TV

An outdoor, wireless, weatherproof TV

Two industry groups are lining up behind rival 5 GHz and 60 GHz technology proposals.

The 5 GHz standard is based on technology from Israeli-based Amimon, and is backed by Hitachi, Motorola, Sharp, Samsung and Sony, says ABI Research. The companies formed the WHDI Special Interest Group.

Mitsubishi, separately, has said it will use Amimon technology.

The 60 GHz approach is designed by Sunnyvale startup SiBEAM and has drawn the support of Intel, LG Electronics, Matsushita Electric, NEC and Toshiba. This WirelessHD group also claims Samsung and Sony, who are hedging their bets.

Broadcom also has joined the consortium, said ABI analyst Steve Wilson.

Amimon has shipped 100,000 of its wireless chipsets and is making “real progress promoting its solution,” says Wilson. SiBEAM, meanwhile, has a new round of fundraising and has won investments from Sony and Panasonic.

In Japan, Sharp and Hitachi are shipping high-end wireless televisions. In the U.S., Sony has its Bravia wireless adaptor available in some retail outlets, said Wilson.

Expect to see new models at January’s Consumer Electronics Show.

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Vibrant E-Book Market Still Years Away, Says Samsumg, As Company Continues Work On Flexible Display

December 8, 2008

The market for electronic book readers is still a few years away as technology vendors explore ways to develop a clearer, flexible, more readable screen, a Samsung executive said Monday.

JunHyang Souk expects LCD oversupply to continue in first half of 2009

JunHyang Souk expects LCD oversupply to continue in first half of 2009

Products such as the Kindle from Amazon and the Reader from Sony have reached the market. But their image quality is worse than paper, giving Samsung extra time to produce an alternative, Executive Vice President JunHyung Souk said Monday.

Souk said Samsung is working on a technology it refers to as cholesteric phase, which is capable of producing a flexible, low-power, high-quality screen that could be made with plastic. It hopes to improve upon the technologies in the Kindle and Reader, which don’t do a good job displaying motion or colors.

“The market is not really growing, so we have a few more years to do R&D,” he said.

Besides, he said, the wireless connections and electronic content needed for e-books are evolving as well.

During a presentation at a company-sponsored technology forum in San Francisco, Souk added that the market for LCD displays should be difficult next year. Over supply persists and and should continue in the first half of next year,, and the growth in the television market will slow.

“It’s a headache,” he said. “Next year is a survival game.”

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Posted by Mark Boslet

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