After several years of non-stop success, Samsung has had a bit of a tough run lately. From exploding smartphone batteries to self-destructing washing machines to the arrest of the company’s Vice Chairman and heir-apparant…it’s been a challenging time, to say the least. But with the company Chairman Lee Kun-hee incapacitated due to failing health and his son, the Vice Chairman, now in police custody – the company’s biggest problem is a lack of leadership at the helm.
Asian Connection
Massive $6.3 Billion Writedown is Tanking Toshiba, Could It Collapse?
Toshiba Corp. announced yesterday that it will take a $6.3 billion writedown to account for the meltdown of its nuclear division. This amount of writedown is much higher than the markets had anticipated, forcing Toshiba into crisis mode having to secure lending commitments from their banks, reorganize their nuclear division, and sell assets to offset their losses.
Is Toshiba near the tipping point?… [Read more…] about Massive $6.3 Billion Writedown is Tanking Toshiba, Could It Collapse?
Sharp Plans Major Investment in U.S., Paying Fealty to Trump
Sharp Corp., a subsidiary of Taiwan’s Hon Hai Precision Industry Co. which is better known as Foxconn, has said in Japan that it plans to make a major investment in the United States. This announcement precedes by just two days a summit meeting between Japanese and U.S. leaders and is seen as a political move to buy favor with both the Japanese and U.S. governments.
See more on this Sharp plan which originated with Foxconn’s CEO Terry Gou… [Read more…] about Sharp Plans Major Investment in U.S., Paying Fealty to Trump
Film Flops Force Sony to Take $1Billion Writedown
Sony Corps’ struggling film division, which hasn’t seen a major hit movie in a long while, has finally forced the company to take a writedown against third quarter earnings of a substantial $1 billion. The difficult decision was necessary to adjust or right-size the value of their operations and will mostly be booked against goodwill – to reset the value of the various film-related divisions.
Why is Sony CEO Hirai setting up an office in Culver City, California?… [Read more…] about Film Flops Force Sony to Take $1Billion Writedown
Prosecutors Make Their Case to Jail Head of Samsung
Judge Questions Jay Y. Lee in Arrest Warrant Hearing
In a case that has been percolating for weeks but has now come to a boil, special prosecutors in South Korea have gone before a judge to obtain a warrant for the arrest of Samsung Group leader, Jay Y, Lee. Summoned by the court to testify, Lee answered questions in a closed-door session at the court, held today. Lee denied he or his company participated in any wrongdoing.
The judge’s decision is expected very soon.
See more on the legal troubles that Samsung now finds themselves in… [Read more…] about Prosecutors Make Their Case to Jail Head of Samsung
Samsung Chairman Named as Suspect by Prosecutors in Political Probe
After a tough 2016, Samsung was likely looking for a little relief in 2017. They’ll have to keep looking because, as the old saying goes, “When it rains, it pours.” Reuters is reporting that prosecutors in South Korea have summoned Samsung Group leader Jay Y. Lee for questioning in a probe into an influence peddling scheme that may topple the president of the country and offer criminal indictments for some of the players.
Lee has been named as a suspect in the matter.
See more on this widening scandal and the risk to Samsung… [Read more…] about Samsung Chairman Named as Suspect by Prosecutors in Political Probe
Sharp Hit With Pushback; Hisense Refuses to Rescind Licensing Deal
Hisense is Said to be ‘Defiant’
News sources in Japan are reporting that Hisense has fired back at newly aggressive Sharp negotiating tactics, saying firmly it will not relinquish the licensing rights to the Sharp brand name in North & South America, as the company has recently requested. Hisense paid heavily to obtain those rights, and despite the fact that Sharp has asked to terminate the deal, the company has no intention of doing so no matter the offer – or more recently – no matter the threat from Sharp.
See more on this developing Sharp soap opera… [Read more…] about Sharp Hit With Pushback; Hisense Refuses to Rescind Licensing Deal
LG Display Signs Deal to Supply Sony with OLED Panels
This Could Mean War with Samsung’s Quantum Dot Tech
Korea’s ETNews network is reporting this week that, after weeks of negotiation, LG Display and Sony have signed a comprehensive deal for the supply of OLED panels to be used in new Sony OLED TVs. The deal has been rumored for several weeks now, but ETNews has confirmed that a supply contract has been signed between the parties.
This could mean good things for OLED TV market share… [Read more…] about LG Display Signs Deal to Supply Sony with OLED Panels
Not Again! Another Big, Bad Surprise from Toshiba
Loses Almost a Third of Its Total Market Value in 2 Days
Toshiba Corps. stock price plunged 30% this week as the company announced it is facing the prospect of booking a potentially multi-billion dollar writedown related to an acquisition made by its U.S. unit, Westinghouse Electric. The acquisition was related to the construction of two nuclear power plant projects being built in the U.S. as the company made a big bet on a nuclear renaissance in the U.S. power structure – a bet that is not paying off.
Toshiba President apologizes for a potentially multi-billion dollar writedown… [Read more…] about Not Again! Another Big, Bad Surprise from Toshiba
Sharp Strikes Again – Terminates LCD Panel Supply to China’s Hisense
Sharp Parent Foxconn Appears to be Playing Global Hard Ball
Just days after we told you about Sharp’s decision to stop supplying LCD panels to global TV leader Samsung – a decision that shocked many in Japan – apparently, they’ve done it again. The Nikkei in Japan is reporting that panel pricing negotiations have apparently broken down between Sharp and China’s Hisense Group with the parties unable to agree on a fair price. As a result, Sharp has notified Hisense it will also stop supplying them with panels in 2017.