As Japan’s consumer electronics industry continues its decline, three of the biggest companies are seen as having the worst performance in 2012, not just in their market, but the country as a whole. Even with Sony using big name movies like The Amazing Spider-Man, and the latest James Bond installment, Skyfall, as promotion tools for its new flagship smartphone and tablet, it is still dealing with $10 billion in losses over the past four years alone.
Along with Sony, Panasonic and Sharp have been financially ruined by the lack of demand for their once popular TV sets. The trio’s shares reached 30-year lows in Tokyo trading during 2012, following a combined total of over $19 billion in losses. Financial analysts warn that a single big-hit product won’t do the trick in prompting recovery anytime soon. Instead, the companies need to focus on cutting costs and promoting reform.
The electronics firms seem to be taking that advice to heart, eliminating over 29,000 jobs worldwide in total, and selling off unprofitable divisions along with assets like land and factories. Tokyo analyst Kota Ezawa with Citigroup says that while Sony and Panasonic exhibit a sense of urgency about needing to change, their business strategies don’t reflect that.[via Economic Times]