Since we always get how bad the PS3 is doing...

[gadgtfreek]

http://www.nni.nikkei.co.jp/AC/TNKS/...11D11JFA01.htm

Someone else is a losing a little too

Toshiba Likely To Post Op Profit Decline For Oct-Dec Quarter
12 December 2007 - Nikkei Report

TOKYO (Nikkei)-- Toshiba Corp is seen posting a lower October-December group operating profit than the 55.9 billion yen it booked in the year-ago period, due to plunging NAND-type flash memory chip prices and higher marketing costs for next-generation DVD recorders.

The company, however, appears to be on track to achieve its full-year operating profit target of 290 billion yen, up 12% from fiscal 2006, as first-half earnings and robust profits at other operations offset third-quarter sluggishness.

The October-December operating profit at the firm's semiconductor business is expected to surpass its year-earlier tally of 23.8 billion yen, but fall short of the 41.6 billion yen it reported in the July-September quarter. The market price for an 8-gigabit NAND-type flash memory chip is now languishing at about 4 dollars after hitting a year-to-date high of 9 dollars in August.

In addition, its operations for next-generation DVD recorders are in the red. Toshiba is spending huge sums to market its HD DVD recorders as Sony Corp. (6758) and Matsushita Electric Industrial Co. (6752) step up efforts to promote their Blu-ray machines.

Profit is also declining at its infrastructure-related business.

As a result, the company's overall operating profit for the quarter is expected to decline.

For the year ending March 2008, Toshiba's operating profit is seen reaching 120 billion yen at the infrastructure division, up 24%, and 150 billion yen at the chip business, up 17%. This is expected to make up for an anticipated loss of at least 40 billion yen at its HD DVD recorder business.

 

[SatinKzo]

I assume they mean player instead of recorder

 

[BlackHitachi]

So both Sony and Toshiba are BLEEDING money!?? Just as long as i keep getting cheap HD disks thats all i care about! Not bashing you i do understand who the post is for.

 

[gadgtfreek]

I assume they mean player instead of recorder

Actually I dont know, its a pretty big typo if they mean player.

I just figured all of Vurbano's Sony posts were getting lonely

 

[SatinKzo]

Hmmm, I wanna know where these recorders are at that are selling so much they are killing the bottom line cause they are selling at losses.

Yeah know what you mean about all the Sony posts and I think most thought that Toshiba HAD to be in the same boat. Maybe not as bad as the HD-DVD players were more mature and less complicated then the PS3, but there was no way they were getting economies of scale to offset the price drops.

 

[JoeSp]

Both companies are loosing money trying to maintain and grow their market share. At some point the investors are going to get fed up if they don't see a return somewhere down the road.

 

[JeremyL]

Toshiba may be losing money on that line, but the company as a whole is making billions because of their semi-conductor business. They can afford to lose money on HD-DVD for years without taking a hit on their bottom line.

 

[gadgtfreek]

Toshiba may be losing money on that line, but the company as a whole is making billions because of their semi-conductor business. They can afford to lose money on HD-DVD for years without taking a hit on their bottom line.

Sony is in the same situation, BUT everyone likes to act like Toshiba is doing well in this market while Sony is "bleeding"

 

[akodoreign]

Sony is in the same situation, BUT everyone likes to act like Toshiba is doing well in this market while Sony is "bleeding"

I think its more of a matter of Toshiba + MS bleeding VS Sony bleeding who has had numerous other wounds lately. See Battery explosion in Dells and Macs.

Course MS lost a billion to the RRoD by extending the warranty to 3 years. So *shrug*

(yes I am being logical from now on. Got the other stuff out of my system , he he)

 

[gadgtfreek]

I think its safe to say no one is doing well in the war right now, except for MAYBE the BD hardware makers like sammy and panny. I THINK they actually make a little money on each player.

 

[vurbano]

Nikkei Net Interactive - Member Login


TOKYO (Nikkei)-- Toshiba Corp is seen posting a lower October-December group operating profit than the 55.9 billion yen it booked in the year-ago period, due to plunging NAND-type flash memory chip prices and higher marketing costs for next-generation DVD recorders.

This is expected to make up for an anticipated loss of at least 40 billion yen at its HD DVD recorder business.


Someone else is a losing a little too

Too bad sink NAND prices and HD DVD recorders have nothing to do with HD DVD players profits. Nice try though.

 

[gadgtfreek]

And youre still delusional if you think Toshiba is making money on $100 and $200 players with 50 free movies

 

[teamerickson]

And youre still delusional if you think Toshiba is making money on $100 and $200 players with 50 free movies

Don't you think it's the retailers that are losing money? Once toshiba sells it to them the retailers can do want they want with the price.

 

[vurbano]

And youre still delusional if you think Toshiba is making money on $100 and $200 players with 50 free movies

Did I say they were?

 

[gadgtfreek]

Don't you think it's the retailers that are losing money? Once toshiba sells it to them the retailers can do want they want with the price.

I find it hard to believe Walmart sold the A2 under cost on their own.

 

[SatinKzo]

Don't you think it's the retailers that are losing money? Once toshiba sells it to them the retailers can do want they want with the price.

Not necessarily. Some states have anti-dumping laws that prohibit selling below cost.

I seem to remember this came up with the $98 deal. I can't find the info, but IIRC it showed that Toshiba was subsidizing the cost and that walmart was not selling at a loss (someone correct me if I got this backward and some states walmart could not sell for $98)

 

[teamerickson]

I find it hard to believe Walmart sold the A2 under cost on their own.

Retailers do it all the time. Get them in and hope they buy other stuff.

http://www.satelliteguys.us/1141792-post29.html

This is from another post about Walmart's cost.

 

[gadgtfreek]

Not necessarily. Some states have anti-dumping laws that prohibit selling below cost.

I seem to remember this came up with the $98 deal. I can't find the info, but IIRC it showed that Toshiba was subsidizing the cost and that walmart was not selling at a loss (someone correct me if I got this backward and some states walmart could not sell for $98)

You are right, some states could not participate in the $99 sale. I just dont beleive at the end of the day Walmart took this on, we'll never know the truth because Walmart plays tight to the vest with everything.

 

[gadgtfreek]

Retailers do it all the time. Get them in and hope they buy other stuff.

http://www.satelliteguys.us/1141792-post29.html

This is from another post about Walmart's cost.

I do not believe for one second that Wally world sold an A2 for $87 less than they paid and ate the money.

This is the company that directs what they'll buy items for, not the guys who's selling to them

 

[SatinKzo]

I'm sorta right, I did have it backward I think.