Category: Electronics

Retail News Asia is committed to providing both local and global retailers with the latest Electronics news throughout the Asian market. This on a daily base.

  • Samsung Electronics expects record $12.8 bn Q3 operating profit

    Samsung Electronics expects record $12.8 bn Q3 operating profit

    The company estimated operating profits of $12.8 billion in the July-September period, an all-time record for quarterly profit. Samsung Electronics said Friday it expected profits to hit an all-time record in the third quarter to September as the South Korean IT giant enjoys booming semiconductor sales.

    The company estimated operating profits of 14.5 trillion won ($12.8 billion) in the July-September period, an all-time record for quarterly profit and nearly triple the 5.2 trillion won earned a year earlier.

    Sales are estimated to have surged 29.65 percent on-year to 62 trillion won.

    Samsung did not announce the performance estimates of each business division but its semiconductor business is widely believed to have contributed greatly to the record-beating report.

    The company is set to release its final earnings report later this month.

    Samsung has been seeking to move past a bribery scandal which saw the company’s de-facto head Lee Jae-Yong thrown into jail and overcome a damaging recall last year of its flagship Galaxy Note 7 smartphone over exploding batteries.

    Lee, who was found guilty in August of bribery, perjury and other charges relating to payments made by Samsung to ousted president Park Geun-Hye’s secret confidante Choi Soon-Sil, is appealing his five-year sentence and says he is innocent.

  • China a major challenge for Apple and Samsung

    China a major challenge for Apple and Samsung

    Responses to Apple and Samsung Electronics’ latest flagship releases in the Chinese market have been lukewarm to downright disappointing.

    Domestically, Samsung Electronics’ Galaxy Note 8 has performed like a rock star, alleviating company insiders’ concerns that the Galaxy Note 7 exploding debacle would keep customers away.

    Over the pre-sales period between September 7 through 14, around 850,000 phones were sold, at least 400,000 of which have been activated. The pre-sales amount is more than double that of the Galaxy Note 7, which had sold 400,000.

    As the chief competitor to Apple in the struggle for global smartphone dominance, Samsung needs to do well not just at home but abroad.

    By September 22, the Galaxy Note 8 had been released in over 60 countries  (South Korea, North America and select European countries had releases on September 15). Eventually, Samsung plans to release the smartphone in over 150 countries.

    Fortunately for the South Korean company, early reports that have trickled out to the media indicate that the Galaxy Note 8 has received an overall positive reception in foreign countries.

    “In the North American market, [the Galaxy Note 8] has recorded pre-sales figures two digits higher than what the Galaxy Note 7 achieved,” said a Samsung Electronics official who asked not to be named. “The sales situation in major European markets is good. Overall, the beginning stages of the Galaxy Note 8′s release have been on the positive side,” she added.

    The conspicuous omission among the mentioned countries is China, a market Samsung, with its 3 percent market share (as of the second quarter of this year) cannot afford to disregard. Slated for official release on September 29, pre-sales of the Galaxy Note 8 began on September 13.

    On September 16, Chinese news platform Jinri Toutiao reported that the South Korean smartphone had recorded a paltry 5,700 in pre-sales in two days. In comparison, the iPhone 8, which also began pre-sales on the same date, had sold 1.4 million through the same time period, according to Chinese e-commerce firm JD.com.

    Though some have pointed to the slightly more cumbersome process for pre-sale purchase compared to Apple (Samsung requires a 100 yuan deposit, Apple requires none), the more widely accepted view among market analysts is that the reason for the dismal reaction is based on geopolitics.

    The agreement between the United States and South Korea to install THAAD missile systems as a countermeasure against possible North Korean provocations has deeply strained ties between the East Asian neighbors. With retailer Lotte Mart recently announcing its decision to pull out of China and vast drops in a formerly booming tourism industry propped up by Chinese visitors, September 29 is a date that looms large not just for Samsung, but for South Korea as a country.

    Samsung will in particular want to avoid the kind of official release day that Apple had with its iPhone 8 on September 22. Hong Kong paper Ming Pao reported that the local reaction was lacking in enthusiasm compared to prior releases of earlier iPhone versions.

    At the Hangzhou Apple Store, 30 to 40 security guards laid out steel fences in front of the entrance starting at 6 a.m. in anticipation of long lines. Two hours later, after only two people stood in line, the guards collected the fences and went home.

    Less than optimal numbers showed up at other Apple stores throughout the country. In one Beijing store, four customers showed up throughout the entire day.

    Like Samsung, Apple has not gained the desired response in a market it desperately needs. Unlike Samsung, it cannot use geopolitical tensions as a convenient scapegoat for its problems.

    Speculation on the poor showing has been attributed to the slated release of the iPhone X later on this year and the lack of technological upgrades that justify the high price tag.

    Consumers (not only in China, but worldwide) have been questioning why they would fork over high prices for the iPhone 8 when they can simply wait to purchase a more advanced version in a few months time.

    Meanwhile, the iPhone 8′s headlining feature, the facial recognition system, has not caught on among Chinese consumers, making the phone a hard sell.

    Finally, the emergence of Chinese competitors has relegated both Apple and Samsung to the lower rungs of the Chinese smartphone market.

    An online survey conducted on social media site Weibo asked users a variety of questions about the iPhone. 28 percent selected “Who cares about Apple, Xiaomi, Huawei?” while 18 percent selected “The price is excessive” among the available responses.

    Once regarded as indisputable leaders in the smartphone game, Apple and Samsung’s positions of leadership will depend in part on making inroads into China. Unfortunately for them, China has proved to be a tricky customer thus far.

  • Oppo Mobiles India given nod to open stores

    Oppo Mobiles India given nod to open stores

    Oppo Mobiles India has been granted approval to open single-brand retail stores, meaning the Chinese smartphone maker can now sell directly to consumers in addition to its wholesale business.

    The Foreign Investment Promotion Board announced the approval on its website, and has also approved luxury goods retailer Louis Vuitton’s application to open its own stores in India.

    India allows foreign firms to sell directly to consumers through the “single-brand retail” system, but companies need to source 30 per cent of the products locally. India moved to partially relax those conditions last year, exempting foreign retailers for three years from the 30 per cent local-sourcing rule.

  • Dyson Malaysia opens concept store in KL

    Dyson Malaysia opens concept store in KL

    Dyson Malaysia has opened its first concept store, in The Gardens Mall, Kuala Lumpur. Dyson Demo is also the largest space in Southeast Asia for the British engineering company.

    “We want our visitors to have the chance to be hands-on with our products. They can pick up, test and experience Dyson’s technology,” says Dyson Southeast Asia GM Martyn Davies.

    Three main products feature in the minimalist store – cord-free vacuum cleaners, purifying fans and hairdryers. Davies says Dyson hopes to introduce four new technologies by 2020.

    “We have a development centre in Johor Baru, so there is a high chance Malaysian engineers worked on the technology behind these products, and are working on our upcoming ones,” he says.
    Visitors to the store can try the vacuum cleaners on three different floor surfaces.

    “This space is designed for our clients to pick up the machines, pull them apart and test them on our test track with various dust samples,” says Dyson Electronics head Jim Roovers.

  • Motorola Philippines moves beyond Manila

    Motorola Philippines moves beyond Manila

    Motorola Philippines has opened a Motorola Kiosk in SM Batangas, its first retail venture outside Metro Manila.

    It is its fourth store since Motorola entered the Philippines in October last year, and follows the opening of a kiosk in Cyberzone, Mall of Asia, two months ago.

    Motorola launched with two concept stores, in the Cyberzone area in SM North Edsa Annex and SM Megamall, both run by MemoXpress.

    Lenovo Mobile Business Group Philippines country manager John Rojo says the brand aims to create more consumer engagement through activities and communications.

    All Motorola concept stores carry the full Moto smartphone lineup.

  • Bangkok Apple Store in planning

    Bangkok Apple Store in planning

    Multiple reports from Thailand tip the opening of the first Bangkok Apple Store in 2018.

    The move began as a rumour when recruitment advertisements appeared in the country seeking creative, expert, “genius”, managers, store leaders and business leader roles in what – based on similar advertising in other markets – could only mean a search for qualified staff for an official Apple store. Advertisements also invited applications for the two-year Apple Store Leader Program, according to MacRumors.com.

    The ads added credibility to rumours published in Thailand earlier this year which tipped the first Bangkok Apple Store would open at the IconSiam shopping centre, currently being built on the banks of the Chao Phraya River, by Siam Piwat, which also owns the Siam Paragon, Siam Discovery and Siam Center malls in the heart of Bangkok. Of those, only Siam Paragon would seem to have sufficient space to host a flagship Apple store, although it would lack the bold street frontage Apple prefers for its retail outlets. IconSiam will feature a row of two-story brand maisons which, while previously earmarked for luxury European fashion brands, could include a distinctive Apple store with bold frontage, such as that used in Apple’s Orchard Road store in Singapore, (pictured above), or its Hong Kong stores, one of which is built on an overpass spanning two buildings across a busy street.

    Apple is also working on its retail debut in Macau and Seoul in this part of the world, following the successful (but delayed) opening of the Singapore store in May.

  • Xiaomi to open Bangkok Mi store

    Xiaomi to open Bangkok Mi store

    A Bangkok Mi store has been announced, not long after the Chinese electronics brand Xiaomi launched in Thailand.

    The authorised Bangkok Mi store will open on October 8, in partnership with Fanslink, at Imperial World Samrong.

    Xiaomi is also strengthening its service network, entering into an after-sales support agreement with VST ECS, which has 10 outlets in Thailand.

    Senior VP with Xiaomi, Wang Xiang, said the brand is planning considerable presence in the country, expecting it to become a key regional market over time.

    “We are all very excited to have this momentum in Thailand and to continue bringing new products with great technology to the people at price points that provide outstanding value,” said Wang.

  • Oppo Philippines launches concept store in Cebu

    Oppo Philippines launches concept store in Cebu

    Oppo Philippines has opened a concept store at Ayala Center Cebu.

    It is part of a nationwide expansion plan by the smartphone brand.

    “Cebu is a valuable market for Oppo… our selfie-centric smartphones are definitely relevant in the ninth city for most selfies in the world,” says Oppo Philippines PR manager Eason de Guzman.

    As well as the latest phone models, the Oppo concept stores carry accessories.

    On hand at the Ayala Center store’s opening was actor Rocco Nacino.

  • IPhone 8 Sees Bleak Response In Australia As Buyers Await iPhone X

    IPhone 8 Sees Bleak Response In Australia As Buyers Await iPhone X

    Users are probably waiting for the launch of the iPhone X, which is why the long lines outside the Apple Stores that have been a common sight post-iPhone launches are nowhere to be seen. A source told Reuters that it was a “bleak turnout” on Friday with fewer than 30 people in the queue before the Sydney Apple Store on George Street opened.

    Mazen Kourouche, who reviews products on YouTube and was first in the queue, noted that there are some modest changes in the device.

    “(It) is pretty similar to the iPhone 7 but it shoots 4k 60 frames per second and it’s got a new glass back instead of the metal which is apparently more durable,” Kourouche told.

    On the feature front, however, the iPhone 8 does not have much to offer, he added.

    Apple shares nosedived following poor iPhone 8 and 8 Plus reviews. Investors who were not happy with the way the device panned out pushed the shares down to a nearly two-month low. What is worrying investors that pre-orders are lower than they have been in previous launches.

    Usually, the number of pre-orders is a good indicator of how well the newest iPhones will sell. However, hours after both the iPhone 8 and iPhone 8 Plus were available, there were not many takers, and there was still stock left with September 22 delivery dates available either online or for in-store pickup, notes MacRumors. Mentions of the iPhone 8 and 8 Plus and iPhone X were fewer on the popular Chinese social media platform Weibo than mentions of the iPhone models in the previous two launches.

    According to Neil Cybart, an analyst who covers Apple for Above Avalon, “I think demand is down from last year, for no other reason than you have another flagship phone.”

    This could result in weekend sales being lower than at any other point since the launch of the iPhone 6 in 2014, the analyst says. Further, the steep price increase for the iPhone 8 over the price of its predecessors could also dent sales going forward.

    BTIG Research analyst Walt Piecyk also believes that other than anticipation for the iPhone X, lack of carrier promotions could be another reason for the lukewarm response to today’s iPhone launch. Piecyk stated that wireless carriers are not interested in promoting the iPhone 8 and 8 Plus, and this might not change even when the iPhone X launches, says the Financial Times.

    Apple’s iPhone X will be available for pre-order starting October 27 with a price tag of $999. The iPhone X comes with an edge-to-edge screen, an improved camera and a new facial recognition system. Rumors suggest that the iPhone X supply will not be enough to meet demand until next year. Apple CEO Tim Cook described the iPhone X  as “the biggest leap forward since the original iPhone.”

    On Thursday, Apple shares closed down 1.72% at $153.99. Year to date, the stock is up more than 32%, while in the last year, it is up more than 33%.

  • No long queues in Hong Kong on iPhone 8 launch day

    No long queues in Hong Kong on iPhone 8 launch day

    The launch of iPhone 8 on Friday did not receive such enthusiastic response from Hong Kong consumers as previously, with no long queues in front of Apple outlets.

    As the iPhone 8 and 8 plus went on sale across the globe on Friday, Apple stores in Hong Kong opened early in the morning and set up crowd control barriers at the entrance for customers to collect their pre-ordered products, but saw shorter-than-expected queues.

    A consumer who successfully bought an iPhone 8 on Friday morning told Xinhua that customers did not even need to pre-order online before getting the new phones at the store. “This is very different from previous years and shows how low the demand is.”

    Due to low demand, the number of resellers or scalpers outside the Apple stores was also obviously smaller than in previous launch days.

    Outside the Apple outlet in the Causeway Bay, a scalper told Xinhua that the prices the scalpers offered to purchase the new phones were the same as or even lower than official retail prices.

    The market has “low expectations” for the iPhone 8, he said, adding that many of his customers prefer waiting for the upcoming iPhone X.

    In Sin Tat Plaza in Kowloon, which usually was crammed with traders reselling new iPhones on the launch day, only a small number of customers were there on Friday, with the resale prices of all iPhone 8 and 8 Plus models barely meeting official retail prices.

    A local newspaper quoted owners of two different shops in the plaza as saying that they believe the iPhone 8 is not warmly welcomed by customers because it is not substantially different from the iPhone 7, but they expect the sales of the iPhone X will be better.

  • HTC and Google form $1.1 billion smartphone partnership

    HTC and Google form $1.1 billion smartphone partnership

    Google has paid US$1.1 billion to Taiwanese smartphone maker HTC to acquire technology and an unspecified number of staff.

    The two companies say the agreement is a testament to the decade-long strategic relationship between HTC and Google around the development of premium smartphones.

    It also supports HTC’s continuing branded smartphone strategy, enabling a more streamlined product portfolio, greater operational efficiency and financial flexibility.

    Despite recognised product quality, HTC has been struggling to make progress in the crowded global handset market. The Google deal will boost its cash reserves and cement the long-standing partnership as Google tries to boost its strength in what some commentators describe as a “fragmented” Android operating system market.

    An unspecified number of HTC employees – many of whom are already working with Google to develop Pixel smartphones – will join Google’s payroll.

    But HTC moved to reassure the market that the company will continue to have “best-in-class engineering talent” currently working on the next flagship phone, following the successful launch of the HTC U11 earlier this year.

    “HTC will also continue to build the virtual reality ecosystem to grow its Vive business, while investing in other next-generation technologies, including the Internet of Things, augmented reality and artificial intelligence,” the company said.

    Google, meanwhile, said the deal “further reinforces our commitment to smartphones and overall investment in its emerging hardware business”.

    “In addition to the talented and experienced team of professionals, Google will continue to have access to HTC’s IP to support the Pixel smartphone family. Additionally, this agreement also represents a significant investment by Google in Taiwan as a key innovation and technology hub.”

    Google will have non-exclusive use rights to HTC’s smartphone IP, the two companies said.

    Deal reflects “Apple threat”

    Commenting on the HTC and Google partnership, John Baptista, an associate professor of information systems with Warwick Business School, and a digital media specialist, said the deal shows Google’s confidence that its has the ideas internally to refine its technology and bridge the divide between IoT, smartphones and other technologies.

    “Despite its larger user base, Google’s future in the smartphone market is being threatened by Apple’s superior ability to integrate hardware and software centred on user experience.

    “The fragmented user experience of Android phones and the increasingly mute voice of Google in this market demands them to raise their stakes and engage more with manufacturers of devices to show more ambition and offer a credible vision for the future,” said Baptista.

    “Google knows it needs to work more tightly with manufacturers to develop a more consistent experience between the phone and other devices such as wearables, home automation, car automation, as well as increasingly work related applications and integration with office systems.”

    Baptista says executing its vision in partnership with HTC will help Google set a reference for other manufacturers that use their platform and explain to its users how and why they should continue to engage with Google’s products.

    “Also, augmented reality and virtual reality look increasingly to be the future for mobile, so it might be that Google needs to work more tightly with chip manufacturers to develop the hardware in conjunction with their software to deliver AR and VR capabilities.”

    “Brilliant step” says CEO

    Cher Wang, chairwoman and CEO of HTC, described the deal with Google as “a brilliant next step” in the company’s longstanding partnership, enabling Google to “supercharge their hardware business” while ensuring continued innovation within HTC’s smartphone and Vive virtual reality businesses.

    “We believe HTC is well positioned to maintain our rich legacy of innovation and realise the potential of a new generation of connected products and services.”

    The transaction, still subject to regulatory approvals and customary closing conditions, is expected to be settled by early 2018.

  • Apple Watch cellular functionality to have low reach

    Apple Watch cellular functionality to have low reach

    Although the big selling point of Apple’s newly-announced Apple Watch Series 3 is its cellular connectivity, Canalys has noted that this functionality will launch with a limited addressable market.

    The Apple Watch 3 – announced earlier this month along side the new iPhone 8, iPhone 8 Plus and iPhone X smartphones – will have an integrated eSIM to support both LTE and UMTS connectivity.

    But in a research note, Canalys said this functionality will only be supported by 14 mobile operators across eight countries at launch, and buyers will not have their choice of carrier as is the case with cellular-equipped iPads.

    Instead Apple Watch’s cellular functionality requires a companion iPhone, and that iPhone must be using a postpaid SIM from an eligible operator.

    In addition, in the important Chinese market, the functionality will initially be limited to just five regions not including Beijing.

    “The total iPhone installed base currently sits at around 517 million. Of those, only 164 million are the right iPhones, with the right carrier, on the right tariff to work with the new cellular Apple Watch at launch,” Canalys analyst Ben Stanton said. This means 68% of iPhone owners will be uable to use the new device’s best feature.

    “Apple’s potential buyers are spread across eligible and ineligible operators and contracts, and many will be disappointed. Apple needs to exert pressure on more carriers to make the required network investment before the buzz around its new product dies down.”

    Canalys did note that another six operators are lined up to offer Apple Watch cellular functionality soon, which would increase Apple’s addressable market to 47% of its total iPhone installed base, but the company is yet to specify when these operators will become eligible.

    “There will be some churn as loyal Apple fans switch operators to unlock the full potential of the Series 3, but customers in long-term postpaid deals with ineligible carriers often cannot do this without incurring a financial penalty,” Canalys analyst Jason Low said.

    “This will be a major barrier to early adoption of the Apple Watch Series 3. But eligible operators do have an opportunity to grow their sales of Apple Watches against retailers and Apple direct channels.”

  • Apple concedes new watch has connectivity glitch

    Apple concedes new watch has connectivity glitch

    Apple on Wednesday conceded its latest smartwatch unveiled a week ago has problems with its most important feature: the ability to make phone calls and access data without an iPhone nearby.

    Several prominent reviewers said Wednesday they could not recommend the device because of a wifi glitch that causes cellular connectivity problems.

    The Watch Series 3 starts at $399 and was launched alongside new iPhone models. Unlike previous versions of the watch, it has cellular network connectivity built in.

    Apple said the watch can experience LTE connectivity problems when it connects to open wi-fi networks such as at a hotel or a coffee shop.

    The company is “investigating a fix for a future software release,” Apple spokeswoman Amy Bessette told.

    Many reviewers praised the new features and gave generally positive assessments.

    But other prominent publications, including the Wall Street Journal and The Verge, recommended against purchasing the new model because the LTE cellular data connectivity did not work as expected.

    The mixed reviews weighed on Apple shares, which closed down about 1.7 percent at $156.07.

    Apart from connection issues, some reviewers were disappointed with the drain on the watch’s battery while making calls. Apple had touted up to 18 hours of battery life but said the watch would get only one hour on a cellular phone call. Gene Munster, a longtime Apple analyst with Loup Ventures, doubted issues with the Series 3 Watch would hurt Apple’s bottom line. “That review takeaway is a negative but is not a surprise. This is the first generation watch with LTE,” he told.

    Bob O’Donnell, an analyst with Techanlysis Research, said the watch reviews, paired with reviews of the iPhone 8 that were generally positive but described the phone as an incremental improvement on its predecessor, put more pressure on the iPhone X to garner good press before its Nov. 3 launch.

    Apple also experienced hiccups with iOS 11, the new operating system the firm released Tuesday.

    For business users, iOS 11’s Mail application had problems sending mail for Microsoft Exchange and Outlook.com mail accounts.

  • Consumers skeptical of iPhone X face recognition

    Consumers skeptical of iPhone X face recognition

    A new survey indicates that one of the defining functions of Apple’s new flagship iPhone X – the face recognition functionality – could struggle to gain traction with consumers.

    Juniper Research polled iOS users in the US, and found that over 40% consider themselves unlikely to use facial recognition as a payment security technology.

    Consumers in the US and UK instead showed a clear preference for fingerprint authentication and voice recognition as alternative biometric security methods, with 74% and 62% respectively indicating they are likely to use these technologies.

    The research also shows that the number of contactless payment users grew by only 2% year-on-year in the US, compared to 12% in the UK.

    Existing users of OEM contactless payment services (such as Apple, Samsung and Android Pay) expect to increase their usage, but only 39% of non-users in the US and 26% in the UK expect to start using mobile contactless payments.

    Major obstacles to adoption include ongoing security concerns, according to research author James Moar. Two thirds of non-users (32%) have concerns about the security of transactions, compared to just 14% of users. A similar proportion of mobile banking non-users compared to users have security concerns inhibiting adoption. But security concerns are overall starting to ease.

    “Transaction security is a key barrier for mobile financial services adoption,” Moar said. “Addressing these concerns will bring many consumers to the point where they will consider using such services.”

  • Toshiba is being sold ?

    Toshiba is being sold ?

    Toshiba has been stuck in tortuous negotiations over selling the segment, which could raise as much as $20 billion.

    At a train station used by hundreds of workers at struggling Japanese electronics giant Toshiba, an advert is apparently trying to poach staff worried by their employer’s precarious financial position.

    “Do you work for ‘that’ electronics company? If so, come and work for us!” screamed the ad for Toyota.

    The mere fact Toshiba staff are apparently being urged to jump ship by rivals underscores the difficulties suffered by the former industrial titan.

    Strapped for cash, the firm is soon expected to be forced to sell off part of the family silver — its key memory chip business, which accounts for around a quarter of its total annual revenue.

    Toshiba has been stuck in tortuous negotiations over selling the segment, which could raise as much as $20 billion.

    Three parties have been vying for the prize: a US-South Korean consortium led by investment fund Bain Capital, Toshiba’s US chip factory partner Western Digital and Taiwan’s Hon Hai Precision, better known as Foxconn.

    On Wednesday, Toshiba said it had signed a memorandum of understanding with the Bain consortium but this did not prevent them still talking to others.

    Selling the profitable chip division is seen as key to Toshiba’s survival, as one of Japan’s best-known firms battles to recover from multi-billion-dollar losses at its US nuclear operations.

    It could also face the humiliating prospect of being delisted from Japan’s stock exchange if the sale does not raise the sufficient funds.

    Fall from grace

    The move to sell represents something of a fall from grace for Toshiba, which can trace its history back as far as 1875 when the company set up a telegraph factory in the now swanky area of Ginza in Tokyo.

    In the 1930s, the firm manufactured the first Japanese vacuum cleaner, the first fridge and the first washing machine, which still works today — albeit with an almighty racket.

    It has been involved in the manufacture of an astonishing array of items from tiny electronic chips to nuclear reactors, with everything from televisions, computers and highway toll gates in between.

    But Toshiba is not the only once-mighty Japanese conglomerate to feel the pain from ferocious foreign competition.

    Household names Panasonic and NEC have been forced into major restructuring, and Sharp was acquired by Foxconn.

    Toshiba’s problems stem in large part from what Yasuyuki Onishi, a specialist in the sector, described as its “reckless” purchase of US nuclear unit Westinghouse, which racked up billions of dollars in losses before being placed in bankruptcy protection.

    This is the “main cause of the crisis that the group is suffering”, Onishi told AFP.

    Those huge losses came to light as the group was still recovering from revelations that top company executives had pressured underlings to cover up weak results for years after the 2008 global financial meltdown.

    Its most recent results published in August revealed a loss of $8.8 billion in the last fiscal year, although it predicted it would be back in the black this year.

    ‘Pothole in the road’

    But most analysts believe Toshiba is too important to fail.

    Tokyo is believed to be unwilling to lose sensitive technology, with security questions swirling over systems already using Toshiba’s memory chips, which are widely used in data centers.

    The government also needs the company to take care of the painstaking task of decommissioning reactors at the Fukushima plant crippled by the 2011 tsunami.

    Toshiba could end up becoming “just a company that dismantles Japanese nuclear plants”, mused Onishi.

    “Toshiba will avoid bankruptcy for now but it will shrink and end up disappearing,” said the expert.

    Masahiko Ishino, an analyst at Tokai Tokyo Research Center, said the sale was designed to help Toshiba meet temporary funding difficulties.

    It will “fill in a pot-hole in the road”, he said, arguing also that the speculated price tag is too cheap.

    “The business is a magic hat out of which comes 500 billion yen (of operating profit) every year,” he said.

    “It’s like a huge property is being bequeathed. Everyone is trying to get a bigger share.”