Pioneer Corp. is seeking to form a business and capital alliance with Japan’s NTT DoCoMo Inc. according to a story today in The Japan Times. The company will also try to enhance its ties with Mitsubishi Electric Corp. “in a bid to survive” in its main car electronics business with a stronger financial footing.
The announcement was made the same day that the company announced their Fiscal 2013 results in which sales came in at ¥451.8 billion ($4.4 billion), up 3.5% over ¥436.8 billion. But more importantly, the company announced a big loss of ¥19.6 billion ($191.6 million)…much worse than the profit of ¥3.7 billion last year.
Years ago, the step-up component audio world was dominated by the big three: Yamaha, Onkyo, and Denon. Having joined Onkyo in 1985, I got to participate in what some people called the “meat of the market.” These brands hit the optimal “sweet spot” of volume and profitability and literally could be the difference between life-and-death for dealers.
