14 DAY TRIAL // This is still considered a rumor, but Sanyo may be up to selling its mobile phone division. The information has high chances of proving to be as real as possible, especially when considering the fact that some potential buyers have also been named.
On the list of those interested in buying Sanyo Electric, Sharp and Kyocera are the favorite ones. Moreover, stock shares have also registered an important drop, a clear sign that the company is going through rough times. They have gone down nearly four points as a result of the bad news rumoring on a potential company sale.
Sanyo Electric has scored a 15 percent drop in overall sales, which gives reason to the rumors of the mobile phone unit to consider it put up for sale. The losses that the company has experienced over the years are greater than it would seem. Over the past three years, the company has registered only losses and the phone sales have dropped more than 1.5 million short.
Sanyo now expects to sell slightly more than 10 million mobile phone units in the current business year until March 2008. The initial perspective hoped for sales was estimated at more than 12 million. The drop in figures is the result of it not being capable of living up to previous expectations and of a more realistic approach of the matter.
In this situation, it sounds like the only solution for putting Sanyo back on the right track is that of selling it to another company that would invest in it and help it reach its full potential. The company has made no official statement on the recent rumors.
Sanyo's stand in this matter should come clear in the near future, as negotiations with the two companies should reach a conclusion. We shall see if it will be Sharp, Kyocera, or even a surprise buyer.