Major electronics makers lost hundreds of billions of yen in potential profits due to rapidly falling prices in fiscal 2004, and they expect the trend to continue in the current fiscal year.
On Thursday, the last of the major electronics firms announced their fiscal 2004 earnings. The reports underlined the growing gaps between the winners and losers in the industry, which was hit by a slump a few years ago and has since been carrying out sweeping restructuring measures.
Competition in the consumer electronics market has intensified, as manufacturers have been pushing up production of DVD recorders and flat-screen TVs to take advantage of the popularity of the latest digital products. The manufacturing surge resulted in a glut that has been driving down prices.