Japan's Consumer Electronics + 4G's Battery Drain

choi

(1) Daisuke Wakabayashi, Picture Dims for Japanese electronics. Wall Street Journal, Feb 7, 2012.
http://online.wsj.com/article/SB ... 00602880134914.html

(a) Excerpt in the window of print: 'Historically speaking, this is the toughest period ever for Japanese electronics companies.'

(b) A table headlined "Power Failure  Projected fiscal-year losses for three Japanese electronics giants[:] Total projected loss: Y1.29 trillion; Panasonic Y780 BILLION; SHARP 290; SONY 220. Y100 billion= $1.31billion[;] Sources: the companies"

(c) Quote:

"Over a span of three days last week, a trifecta of Japan's most celebrated electronics companies--Sony Corp, Sharp Corp and Panasonic Corp--gave up hope for anannual profit, projecting combined losses of nearly $17 billion for the MArch-ending fiscal year.

"Once the dominant force in the consumer-electronics industry, Japanese firms simplty aren't creating enough of electronics people want. What they do make isn't differentiated enough, so the companies end up in brual price competition. When consumer desires change, they can't react fast enough

"they [Japanese companies] have largely missed the wave for mobile devices

"Amd in the same way US companies were challenged [in the 1970s] by the emergence of Japanese tech companies, the latter [presently] face rising competition from not only Korea, but also eventually China.

(d) My comment:
(i) The report is worth reading.
(ii) The report has this to say about Sharp.

"Sharp built a mammoth, state-of-the-art liquid-crystal-display panel factory in Japan. * * * Part of Sharp's problems stem from its investment in a Y1 trillion LCD factory it opened in 2009. Considered the pinnacle of Japanese manufacturing, Sharp's plant, located in Sakai city, was praised for its cutting-edge production methods. But as the global economy softened, Sharp was saddled with inventory. Sharp said it plans to run the factory at half capacity intil September."

(iii) Sakai, Osaka
http://en.wikipedia.org/wiki/Sakai,_Osaka
(iv) Sharp Corporation
http://en.wikipedia.org/wiki/Sharp_Corporation
("In 1912, Tokuji HAYAKAWA founded a metal workshop in Tokyo; Another of his major inventions was the Ever-Sharp mechanical pencil in 1915, from which the Sharp Corporation took its name)
(v) Martyn Williams, Inside the World's Most Advanced LCD Factory. PC World, Dec 1, 2009.
http://www.pcworld.com/article/1 ... ed_lcd_factory.html

That was 10g (g for generation).


(2) Greg Bensinger, Fast Phones, Dead Batteries; Most customers are on 3G networks that don't demand as much from their batteries. Wall Street Journal, Feb 6, 2012
(Users of 4G smartphones are forced to switch off broadband connection)

Quote:

"The main culprit is spotty 4G service--even in the nation's largest cities--which requires the phones to search constantly for a signal.

"Verizon Wireless, AT&T Inc and Sprint Nextel Corp are investing billions of dollars to expand their 4G networks over the next two to three years in a technological standard known as long-term evolution, or LTE, with the promise of speeds of as much as 10 times those of ubiquitous 3G service.

"The carriers want customers to switch to the new networks because the technology requires less bandwidth to deliver data, leaving room for more customers to download music or television shows. And with faster download speeds, 4G users are inclined to use more data, meaning they will need pricier service plan. [Catch 22: of course potential customers will not take up 4G if its service is spotty.]

"Device makers such as Samsung and Motorola Mobility Holdings Inc are banking on their 4G devices to put a dent in sales of Apple Inc's iPhone, which continues to gain market share even though it lacks the faster service.

"But erratic service isn't the only problem. Battery technology isn't keeping pace with smartphone advances. * * * device makers are rapidly improving processing speeds and the operating software that drives the phones. At the same time, developers are increasing battery life by just 1%, on average, according to Mr [Carl] Howe[, a vice president for research firm Yankee Group].

[In response, Motorola and HTC now sells bigger batteries, which some find too bulky.]

My comment: There is no need to read the rest.

(3) Justin Lahart and Tom Orlik, China's Export Pain May Be Mexico's Gain. Wall Street Journal, Feb 6, 2012 (in the page "Heard on the Street).

Quote:

"The pool of Chinese workers is getting shallower. * * *  The United Nations projectes the number of women age 15 to 24 in China will fall from 106 million in 2010 to 92 million in 2015.

"The changing cost dynamics have boosted hopeful talk that US manufacturers will turn to 'in-sourcing,' and it is true some companies are moving operations back home. On its earnings conference call Thursday [Feb 1], Carlisle Cos said it was stepping up its tire-making operations in Tennessee because, according to Chief Executive David Roberts, 'we can actually manufacture as cheaply or cheaper here in the US than we can in China.'

"But for many companies, a better step is to beef up production in Mexico. * * * A look at recent trade statistics suggests companies are already on the move. The number of loaded shipping containers entering the ports of Los Angeles and Long Beach, Calif--the major entry points for Asian imports--edged down 0.2% last yer. But trains and trucks carried 8.7% more freight, by weight, from Mexico to the US in the first 11 months of last year than they did a year earlier.

"The biggest beneficiary is Mexico. The country and its companies were hurt badly over the past decade by a loss of exports to China. The trade shift could be a salve to the economic and social woes that have made some investors skittish of putting money there.

My comment: There is no need to read the rest.