Some may be aware that Sony, Panasonic and Sharp have been having problems, but they might not know exactly how severe those problems are. Data compiled from some reports and JEITA has revealed the truth.
JEITA stands for the Japan Electronics and Information Technology Industries Association. A read through its research database shows that Japan's production of consumer electronics is valued at $15 billion (11.62 billion Euro), or $4 billion less than ten years ago (3.09 billion Euro).
As it turns out, the three top electronics suppliers in the country haven't weathered the metaphorical storm very well.
Sony, Sharp and Panasonic are all suffering from severe financial losses, severe enough that layoffs aren't enough to fix the situation.
Thus, all three have decided to sell some assets, which means buildings and businesses that lose more than they make.
It will fall to the clients to figure out how to reorganize those businesses and transform the buildings so that they don't act as financial leeches after the acquisitions.
The Christmas season is definitely not the best period for all this to happen, but the timing isn't really surprising.
The many job cuts and, in Sharp's case, incredible losses that forced it to look for external aid, had already painted the picture.
There is also the matter of the new year. 2013 is almost here, and IT players want to use it, starting with the Consumer Electronics Show (CES 2013), as a catalyst for a business rebound.
It is unclear if the billions that these three will make, assuming the deals go forward, will compensate for all the losses of the year. What we can say, with a reasonable degree of certainty, is that the layoff plans will go forward regardless of the outcome. Not the best thing to learn about in time for Christmas, but it can't be helped.
Sony, Sharp and Panasonic Forced to Sell Buildings and Businesses
The Japanese companies are definitely not doing very well
... so hot right now