Toshiba's Low Profit Could Affect HD DVD Spending

[dustin410]

Tumbling flash memory chip prices leaded Toshiba to a 25 percent drop in its quarterly operating profit, making it even harder to fight ongoing loses in its HD DVD bussines.

NAND flash memory chips accounted for roughly half Toshiba's profit last year. But the world's No.2 NAND flash memory chip maker now expects further microchip price falls in January-March, as rival Korea's Samsung shifts to NAND flash in the wake of a supply glut in computer memory.

The resulting price falls halved Toshiba's operating margin in its chip business to 4.8 percent in October-December from 10 percent in the previous quarter, and cut the unit's profit by 60 percent.

Toshiba is also fighting losses in its HD DVD player business. For the week that ended Jan. 12, Blu-ray hardware captured 90 percent of the market, according to data collected by the NPD Group, a market analysis firm.

Toshiba slashed prices on its players by 40 to 50 percent after Warner studio announced this month that it would release high-definition DVDs only in rival Blu-ray format. In addition, it said it would air a HD DVD commercial during this Sunday's Super Bowl. But the stock drop could force Toshiba's executives to revisit its investment in HD DVD.

For now, Toshiba believes that the strong sales for PCs, industrial systems and medical devices, as well as a boost from its newly-acquired U.S. nuclear power unit Westinghouse, would make up for shortfalls in microchips and HD DVD

http://www.cdrinfo.com/Sections/News...x?NewsId=22380

This post makes it sound as if they arn't quite sure what too do. This link, here, http://formatwarcentral.com/index.ph...per-bowl-xlii/ makes it sound as if they have a come-back plan. Some huge announcement or something.

Any thoughts as to what's going to happen, or what it could be?

[Marcusarilius]

From all angles, this is so over for Toshiba. only a matter of time till the board shuts em down.

[dustin410]

Originally Posted by Marcusarilius

From all angles, this is so over for Toshiba. only a matter of time till the board shuts em down.

My thoughts exactly. I mean, a 25% slash in there profits is HUGE. The only thing that gets me is this so-called big announcement. Makes you wonder if it's just smoke. It's weird though that both ot the above announcement were made on the same day. That makes no sense too me.

[cajun1975]

Toshiba seems like a ghost. They don't realise they are DEAD

[JohnAlden]

Quote from internetnews.com:The pricey 30-second spot during television's marquee programming event will reportedly feature Toshiba's HD-A3, A30 and A35 units, which are now selling for between $149.99 (for the A3) and $299.99 (for the high-end A35), http://www.internetnews.com/bus-news...le.php/3724696. Toshiba you are DUMB AS HELL!!!

[tru2blu707]

This post makes it sound as if they arn't quite sure what too do. This link, here, http://formatwarcentral.com/index.ph...per-bowl-xlii/ makes it sound as if they have a come-back plan. Some huge announcement or something.

Any thoughts as to what's going to happen, or what it could be?

maybe they are planning on giving away free players to everyone attending the superbowl??

[Marcusarilius]

If Toshiba and DUD were still relivant in the HD game, they would not be slashing player prices every other tuesday. Unfortunately, this son of ***** company is publicly stating that they and DUD is still going strong and there is no reason to worry simply so they can sell off the remaing DUD players. Crash and burn for Paramount, Universal and an unsuspecting public. This is a criminal act and someone should be going to jail on such deceptions. Profiting to the last breath while standing on the bodies of others making sure they are the last to go under.

[zipbags]

Originally Posted by cajun1975

Toshiba seems like a ghost. They don't realise they are DEAD

I see dead formats...

[Blubaru]

Originally Posted by zipbags

I see dead formats...

I remember when bruce willis still had hair LOL

[dustin410]

Originally Posted by Marcusarilius

If Toshiba and DUD were still relivant in the HD game, they would not be slashing player prices every other tuesday. Unfortunately, this son of ***** company is publicly stating that they and DUD is still going strong and there is no reason to worry simply so they can sell off the remaing DUD players. Crash and burn for Paramount, Universal and an unsuspecting public. This is a criminal act and someone should be going to jail on such deceptions. Profiting to the last breath while standing on the bodies of others making sure they are the last to go under.

It is criminal. Why doesn't the BDA just pay them to go the hell on somewhere? Here is $250,000,000.00. That should cover what you'd make on your damn fire sale. Now get the hell out of here! Thanks.

[galz]

According to that link http://www.internetnews.com/bus-news...le.php/3724696 Circuit City is NOT discontinueing HD DVD either.

Some Circuit City managers allegedly told people from some home-theater product and enthusiast Web sites that the chain was discontinuing sales of HD DVD players.

Well, there appears to be a failure to communicate between those managers and the home office.

Jackie Foreman, a spokesperson for Circuit City, rather emphatically denied this. "It was a pricing error but it was corrected and will continue to make both formats available to Circuit City customers," she told InternetNews.com.

[db2]

Originally Posted by dustin410

It is criminal. Why doesn't the BDA just pay them to go the hell on somewhere? Here is $250,000,000.00. That should cover what you'd make on your damn fire sale. Now get the hell out of here! Thanks.

Honestly, I used to think the same way. Now I hope Toshiba keeps HD-DVD going and I hope they keep losing more and more money. Maybe when they're on the threshold of bankruptcy they'll wake up.

The state of the format war after Warner's decision:


Toshiba: It's just a flesh wound

[Marcusarilius]

Originally Posted by dustin410

It is criminal. Why doesn't the BDA just pay them to go the hell on somewhere? Here is $250,000,000.00. That should cover what you'd make on your damn fire sale. Now get the hell out of here! Thanks.

Or maybe Toshiba might be allowed to pay the BDA 250 mil for permission to be allowed to begin making blu-ray players. I will never buy any Toshiba product ever. Ever.

[HeavyHitter]

I'm not sure what kind of big announcement - were they talking to rdjam? Maybe even further price cuts? Unlikely, but most plausible IMO. The 51 gig disc? Unlikely, but really not big even if they did (too little too late). There's no chance in hell they will be able to grab a Blu studio, so I'm not really sure what they could do.

The fact is they are losing a lot of money on HD DVD because of the huge egos and "pride" of some executives and someone sooner or later someone is going to put a stop to all of this nonsense. Honestly, I'm glad Toshiba is hurting from HD DVD and I'd really like to see some serious damage to that company and those respoonsible held accountable (any chance of that?).

I too will never buy another Toshiba product. They were the main cause of this entire format war mess and caused enough BS for everyone.

[zipbags]

Originally Posted by galz

According to that link http://www.internetnews.com/bus-news...le.php/3724696 Circuit City is NOT discontinueing HD DVD either.

Some Circuit City managers allegedly told people from some home-theater product and enthusiast Web sites that the chain was discontinuing sales of HD DVD players.

Well, there appears to be a failure to communicate between those managers and the home office.

Jackie Foreman, a spokesperson for Circuit City, rather emphatically denied this. "It was a pricing error but it was corrected and will continue to make both formats available to Circuit City customers," she told InternetNews.com.

Thats a real shame. It's been a month since the holidays. Pass the one month return period. I think the stores are doing a terrible disservice to their customers and prolonging a format war that has hurt the hd-format and have stagnated dvd sales.

[Marcusarilius]

Originally Posted by HeavyHitter

I'm not sure what kind of big announcement - were they talking to rdjam? Maybe even further price cuts? Unlikely, but most plausible IMO. The 51 gig disc? Unlikely, but really not big even if they did (too little too late). There's no chance in hell they will be able to grab a Blu studio, so I'm not really sure what they could do.

The fact is they are losing a lot of money on HD DVD because of the huge egos and "pride" of some executives and someone sooner or later someone is going to put a stop to all of this nonsense. Honestly, I'm glad Toshiba is hurting from HD DVD and I'd really like to see some serious damage to that company and those respoonsible held accountable (any chance of that?).

I too will never buy another Toshiba product. They were the main cause of this entire format war mess and caused enough BS for everyone.

+ 250 Mil.

[plee]

The spot was purchased long before Warner's annoucement, but the content of the ad could change up until kickoff, so they could do something. But each day that passes they lose some retailer/company support and just to wait for the superbowl instead of leaking some sort parts of a "come-back" plan is pretty stupid. Then, again, Toshiba hasn't been too smart lately...

[jetydosa]

The "big announcement"/Superbowl commerical would be Toshiba conceding if they had any class. Concede and a $100 credit towards a BR or BR/Combo player.

[atrofast]

Originally Posted by jetydosa

The "big announcement"/Superbowl commerical would be Toshiba conceding if they had any class. Concede and a $100 credit towards a BR or BR/Combo player.

I doubt they'd pay ~3mil to tell everybody they're giving up :P

[sssick]

Where did someone post a "Big announcement" was coming? AVS?