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© 2012 AFPFitch cuts ratings on Panasonic, Sony to junk
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© 2012 AFP
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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.
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.
herefornow
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.
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.
Thomas Anderson
Sony is now junk... while Samsung is soaring. This ought to keep the right-wingers happy.
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..
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.
AlexNoaburg
Now the hard rightwingers are shaking their heads, positively wondering how their economy got into the doldrums.
Xenomorph
@gaijinfo, well I think the product is still great, but the value isn't. We're measuring different criteria.
Scrote
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.
Serrano
I hereby downgrade Fitch to junk status.
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.
Konsta
Japanese people must stop buying iPhones and iPads and be a little more patriotic, where it matters.
some14some
Junk status by credit rating companies tantamount to 'recall' of defective products...!
Shi Yuehan
Cut the rating all you want, Konosuke Matsushita's Goodwill is priceless.
bruinfan
What effect will this have on the Nikkei-225?
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.
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.
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.
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.
Bob Sneider
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