Sharp Cuts Profits Forecasts
Japanese electronics manufacturer, Sharp has slashed its earnings forecast, citing a slump in sales of its mobile phones. The company cut its net income by 41 percent to US$580 million, while sales would be virtually unchanged though.
“The severe business environment should continue from the third quarter onward, especially for mobile phones and relevant electronic components,” the company said.
Sales of handsets in Japan have dropped since the operators all cut the subsidies they offer on new contracts.
Sharp's exposure is doubly worse as not only does it sell handsets to the operators, but is also a major supplier of components to other handset vendors.
Mobile operator, KDDI recently warned that it might miss its full-year handset sales target as customers delay buying new telephone models after the operator introduced an instalment-payment plan.
Posted to the site on 7th October 2008
