Wednesday, January 30, 2008
Toshiba posted a worse-than-expected 25 percent drop in quarterly operating profit after flash memory chip prices ate into margins.
Toshiba, the No.2 NAND flash memory chip maker after Samsung Electronics Co Ltd, now faces steeper-than-expected price falls even as it plans further capital spending.
"Samsung is shifting its focus on flash, and Toshiba is the one feeling the pinch," said Tomomi Yamashita, a senior fund manager at Shinkin Asset Management Co. Ltd.
Toshiba now expects average NAND flash chip prices to fall 50 percent this year. It previously expected a 40 percent decline.
The difference "is hurting", Executive Vice President Fumio Muraoka said at a news conference.
Toshiba, whose products range from washing machines to nuclear power plants, is also fighting losses in its HD DVD recorder business, he said.
By: DocMemory
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