Sharp: We may not make it

Long-struggling Japanese electronics maker Sharp has warned this week that they may not make it barring a large turnaround or alliances with other companies.

The company posted a full-year net loss forecast of $5.6 billion, almost double what they expected months ago.

With a press statement, the company noted they are seeing "serious negative operating cash flow. This raises serious doubts about (our ability) to continue as a going concern." A going concern notice is usually the kiss of death for a company unless they can find some sort of funding.

Hon Hai Precision has been in talks to become the biggest shareholder for Sharp for months, but a deal is not expected until March.

Sharp, just like other Japanese TV makers, has seen its fortunes turn in recent years as other Asian companies, like Samsung, use lower costs and lower margins to squeeze them out of the industry. Sony, Panasonic and Sharp have lost $20 billion combined over the last two years, and been forced to fire 60,000 employees.

Written by: Andre Yoskowitz @ 4 Nov 2012 13:41

Morreale

Quote:Sony, Panasonic and Sony have lost $20 billion combined over the last two years, and been forced to fire 60,000 employees. Sony's lost so much money they deserve to be mentioned twice.

This is too bad though... I hope Sharp can turn things around. I've only ever bought Sharp LCDs and LEDs over the past 5 years or so and they've never disappointed me.

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4.11.2012 16:07 #1

hearme0

I agree, what a shame about this news. While I don't own Sharp products now, I have in the past and dollar for dollar, they're awesome products! Besides, they're totally innovative.

4.11.2012 16:21 #2

ronhondo

They sold low quality crap for the last several years. What did they expect ??

4.11.2012 19:34 #3

Semperfipal

I bought Sharp products (Color TV, Fax machine, Calculator's) three decades ago for a company I used to work for. At that time they were excellent products. I don't know about today's goods, but if they were like yesteryear, it's a shame they may become extinct.

"Do not underestimate the power of an enemy, no matter how great or small, to rise against you another day." - Atilla

4.11.2012 19:49 #4

Notcow

A fairly large competitor in the electronics industry dropping out of the market isn't exactly what the economy needs right now...

4.11.2012 20:51 #5

aeonstom0

Well I compare a Samsung 46" with clear motion flow and 120 refresh rate Smart LED HDTV to Sony 46" LED HDTV both have nearly the same feature but Samsung a 46" will sell for $800.00 and a Sony 46" sells for $1300.00 or lower and thats before tax. For quality, I already own a Samsung 22" and picture quality is breathtaking. I could say the same thing for their 46".
Right Now I'am wrestling which brand should I go for I like Sony because I have confident in their product and another brand gave me a good impression of their product and a little CHEAPER

4.11.2012 21:26 #6

xboxdvl2

@aeonstom0 i got my sony tv for $800 brand new 46 inch.

i havnt brought any sharp products for years but i do own a set of sharp speakers which i got with a sterio in 1999 and they work great.

i have the big screen tv,a ps3 and im gonna surround sound to go with it soon hopefully.car still runs smooth and computer still works but its a bit outdated.

5.11.2012 00:33 #7

Mysttic

Quote:Right Now I'am wrestling which brand should I go for I like Sony because I have confident in their product and another brand gave me a good impression of their product and a little CHEAPER I had to be a realistic dick in this case (towards Sharp and Panasonic)... But if you they go bankrupt; their electronics would be come liquidated and sell even cheaper than the tv's you are looking at. If warranty and support isn't something you care about, you may want to consider holding off to see what happens with Sharp and Panasonic first.

5.11.2012 08:26 #8

megadunderhead

Here is the problem of which people do not understand at all samsung builds quality sharp doesn't sony use to but doesnt now because most of these company's went cheaper

5.11.2012 12:39 #9

chefdamo

What people Fail to understand about Sharp is for the past 10 years the mobile phone that they have been making have stayed in Japan and that is crazy to me.

If you want to make any money you got to hit the world market and you got to build a reputation by giving the consumer what they wont and for the best price for the quality.

Sharp can still make it but at a cost. What they need to do is start delivering there goods to the world market Like there mobile phone. To me the mobile phonesI have seen look world class. If there going to keep them to just Japan how is that going to make them money really.

Sharp boarden sales of products and see a better return for your money with more being sold. the last phone I remember here in the uk was the sharp gx10i.

5.11.2012 20:32 #10

pmshah

As a percentage of revenues TVs make up a substantial percentage for every company. When a current model Samsung will play every known container and codec format, and that too from a USB attached and powered hard disk drives, at least the ones I have come across, Sony will not even play an xVid avi. Then they want higher price for it? Owners of Sony no longer enjoy bragging rights.

In the 80s, around Delhi Asian games time, Indian government's relaxation of import regulations for color TVs saved their a**. They might need a similar miracle now.

9.11.2012 20:05 #11

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