Fitch cuts ratings on Panasonic, Sony to junk

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

  • 0

    some14some

    Junk status by credit rating companies tantamount to 'recall' of defective products...!

  • 3

    Xenomorph

    @some14some, Ahh, not quite. It's an indication that they can't be assumed to pay back any debt they take off any long as they are on such shaky ground financially. All these companies still make great products, they just can't compete at the price levels they ask for in the market as their business models are inefficient and poorly managed financially. Kind of like all of Japan, sadly.

  • 5

    gaijinfo

    @Xenomorph

    "great products" may be, but if they cost more than the competition, and don't offer any increased performance for their increased price, then they ain't so great. The customer is always right. And if customers ain't buying them, then they ain't so great.

  • 3

    Thomas Anderson

    Sony is now junk... while Samsung is soaring. This ought to keep the right-wingers happy.

  • 0

    Shi Yuehan

    Cut the rating all you want, Konosuke Matsushita's Goodwill is priceless.

  • 3

    globalwatcher

    I want all Japanese business to succeed.

    1)Japanese products make marginal improvements but they are missing a bang.

    2)The products are not relating to consumer needs.. Wake up, Japan. You are still manufacturing products that we do not need. .No innovation, no R&D.

    3) Do not blame others, blame yourself first. Old Japanese business model has to be reevaluated and overhauled..

  • 2

    Xenomorph

    @gaijinfo, well I think the product is still great, but the value isn't. We're measuring different criteria.

  • 1

    Scrote

    The high yen-which hit record levels around 75 against the dollar last year and remains historically strong-makes Japanese firms' products less competitive overseas. High labour costs at home have made it tough for the nation's electronics companies to compete globally.

    The above is simply not true. The Yen appears to be high in nominal terms, but in real terms it is weak, or hardly unchanged from 15 years ago. Also, companies have been cutting salaries over recent years and employing cheaper, temporary workers. These companies are making huge losses because of their unwieldy, complex structure and focus on cheap, commodity products where there is little profit to be had.

    The problem for Japan is that the education system is still focused on turning out factory workers at a time when the factory work is moving to China. This needs to change, but politicians, such as the delusional Abe, seem to think that instilling "morals" and singing the anthem are the main duties of schools.

  • 5

    herefornow

    Kind of like all of Japan, sadly.

    Xenomorph -- spot on. If Japan's debt wasn't all bought by its own citizens, mainly through Japan Post, it would be close to junk status as well. Because its long-term prospects are not much better than these electronics firms. Japan Inc. refused to change despite numerous red flags over the past couple of decades. And now it is simply on a long slide into irrelevance.

  • 3

    Redcliff

    Japanese electronic goods for a long time have been the leader in the industry, not now. With the rise of Korean goods in pricing and quality have overtaken them. Unless Panasonic, Sony and Sharp can formulate some smart marketing strategy and plough in more on R&D it won't be long the Chinese electronic goods would also be overtaking the Japanese. Cost of labour and high yen are only two issues but there are others including management ability to counter competitors strategy is vital.

  • -3

    Bob Sneider

    this is it! This is the end for sony. Noone would want to invest in a junk company. Sony is finally dead, and good riddance.

  • 2

    Farmboy

    This is the end for sony.

    I like Sony. It's sick, but still alive. Maybe I'll buy some on the next downswing.

  • 0

    bruinfan

    What effect will this have on the Nikkei-225?

  • -3

    Bob Sneider

    Maybe I'll buy some on the next downswing.

    Why support a sinking (already sunk, more like) ship? Natural selection at work here, better to support an innovative, great company like Samsung/LG or support promising newcomers like Huawei/ZTE/Lenovo

  • 0

    Fazlı Azly

    My family has been using National/Panasonic branded electrical appliances since I was a kid. Our National iron still works fine after so many years. I still think Panasonic makes great products, but as their products are costlier than korean/chinese competitors, some people might prefer buying those cheaper products instead. Maybe they have management problems, but to say that japanese lacks innovation, in my opinion, is not entirely correct. Panasonic TVs constantly rank among the best TV in their category, at least in the reviews that I read.

  • 1

    Serrano

    I hereby downgrade Fitch to junk status.

  • 6

    JoshuYaki

    Samsung / LG have been clogging the market with equivalent or better technology at profit loss low prices for more than 10 years now. Especially flat screen / digital cam / cellphone etc. Top heavy, high production cost Japanese companies didnt' stand a chance. It took them forever to reduce thier costs by moving to China to produce goods, but now they are associated with cheap China junk. I remember when Sony was amazing quality, top of the line technology. Then I remember seeing problem after problem with Sony TV's specifically (I used to be the AV guy for a University). The Japanese old-school oyaji are reluctant to change but with unfair competition.. They didnt stand a chance. They will never recover. Neither will Sharp or National etc.

  • 3

    AlexNoaburg

    Now the hard rightwingers are shaking their heads, positively wondering how their economy got into the doldrums.

  • -2

    JeffLee

    I bought a Sony MP3 player for traveling. The FM tuner worked ONLY for Japan. Useless. So I bought a Korean iRiver mp3 player. FM tuner had global settings. Perfect. The iRiver also gave me more functions and options for the same price as the Sony.

    I know what I'll be shopping for from now on.

  • 1

    globalwatcher

    There is a great potential and an opportunity in digital technology nobody hasn't tapped into it yet. These ojisan managers are still in analog technology. If they want to succeed in this area, they have already got engineering talents. Get rid of these old ojisan managers who cannot think anything beyond alalog technology, and move forward. Yes, it can be done.

  • -2

    jeff198527

    Most Japanese companies are doing fine. Just because three companies are doing bad isn't a reason to right off all of Japan. I say just let Sony, Panasonic, and Sharp die out.

  • 1

    Konsta

    Japanese people must stop buying iPhones and iPads and be a little more patriotic, where it matters.

Login to leave a comment

OR

More in Business

View all

View all