Feeds

Panasonic pulls Euro smartphone after just a year

Horse, barn door scenario as losses mount

Top three mobile application threats

Panasonic has become the latest Japanese tech giant to fall on hard times, announcing projected losses for 2012 of ¥765bn (£5.9bn) and a hasty decision to pull out of the European smartphone market after just a year.

The firm persuaded four Japanese banks to loan it ¥600bn (£4.7bn) after announcing a record loss of ¥772.1bn (£6bn) in the last fiscal year.

However, it looks to be on track for an even worse year in 2012, announcing that losses would likely hit ¥765bn in the financial year ending March 2013. Shares fell by nearly 20 per cent on Thursday on the back of the financial gloom.

Panasonic’s efforts to arrest the slide have not been helped by a poorly performing Sanyo, the firm it spent ¥670bn (£5.2bn) to buy in 2009 in the hope its solar battery business would be a money-spinner.

Its consumer electronics sales have also been hit in China by the nationalistic boycott of Japanese goods by many buyers in the aftermath of Tokyo’s decision to purchase a disputed set of islands in the East China Sea.

More embarrassing still for the firm was the revelation it will be pulling out of the European smartphone market less than a year after it announced it would be selling its devices outside of Japan for the first time.

Panasonic president Kazuhiro Tsuga admitted at a press conference that the firm had misjudged the international smartphone market.

“We believed that we would be able to make profits by selling uniform smartphones around the world, but we now realise that Japanese consumers are seeking functions that are unique to the local market,” he said, according to the Asahi Shimbun.

“We cannot expect synergy of our smartphone business [between Japan and Europe].”

Panasonic’s name will be added to that of Sharp, Sony, NEC and other once proud Japanese tech titans which are struggling to stay relevant, and profitable, in the industry they find themselves in today.

In the smartphone space especially, Japanese handset makers have historically struggled abroad, while foreign rivals such as Apple and Samsung have begun to erode their share at home. ®

3 Big data security analytics techniques

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.