Sony Corp. said the yen may strengthen, threatening to push Japanese electronics makers further behind South Korean competitors, particularly Samsung Electronics Co.
Combined with falling television prices and a weak U.S. economy, Japan's biggest exporter of TVs has no "moment to breathe," Sony Vice Chairman Ryoji Chubachi said in an interview Tuesday. By comparison, Samsung Electronics reported operating profit more than doubled last quarter and analysts estimate the company's net income climbed to a record.
The yen's gain against the South Korean won in the past year has given Samsung and Seoul-based LG Electronics Inc. room to slash more than $100 off a $1,000 TV without trailing Sony and Panasonic Corp. in terms of profitability. A stronger yen, which has led to higher earnings at South Korean manufacturers and losses at Japanese producers, may widen the rift.