Previously considered as household names for high-quality electronic products, Sony, Panasonic and Sharp took a drastic nosedive in the tech market ever since consumers shifted their preference to digital media, mobile devices and software applications.
“People used to have Sony homes,” said Tony Costa, an analyst at Forrester Research. “You’re just not seeing that anymore.”
So far this year, Sony posted subpar sales from their consoles and other electronic devices with their debts reaching the ‘panic’ threshold.
Sharp is losing money in the trading floor almost every month and is reportedly seeking a bailout from the Japanese market while Panasonic showed their intention to cut off other segments in their business that haven’t been profitable.
CNET reporter Roger Cheng said the unprecedented collapse of these electronic giants signals the end of an era for Japanese consumer electronics.
“Everybody recognizes those days won’t come back again,” said NDP Group analyst Stephen Baker.
With the fall of the Japanese electronic titans, South Korea’s Samsung Electronics has developed into a legit superpower in the industry with the launching of their full array of products, from their smash hit smartphones to cutting edge technologies.
In his article on CNET.com, Cheng clearly explained the reasons behind the downfall of Japanese electronic empire and their ignorance of the shifting market trend was apparently one of those.
“As with many other downfall stories, these companies failed to pay attention to shifting trends and were outmaneuvered by overseas competitors. As consumer markets shifted to digital media and games, mobile devices, software apps and the Internet, the Japanese struggled to keep up,” Cheng said in his article last week.
The sharp increase in the value of the Japanese Yen did not also help these companies, who have to ship more expensive products abroad.
“External factors like the rising value of the Japanese yen, which made products exported from Japan more expensive abroad and cut into margins at home, further squeezed the companies.,“ added Cheng.
If not mitigated, these factors could possibly lead these once known electronic entities out of business, for good.