Japan's biggest makers of phones, TVs and microchips say they'll lose about $17 billion this year, about three-quarters of what Samsung Electronics Co. will spend on research to lengthen the lead over its competitors.
Sony Corp. more than doubled its annual loss forecast for the year ending March 31 as it named a new chief executive officer, while Panasonic Corp. and Sharp Corp. predicted the worst losses in their histories. Their combined losses compare with the $22 billion that Samsung, Asia's largest consumer electronics company, said it will invest in capital expenditures.
Japanese companies hurt by a stronger yen, flooding that swamped their Thai factories and weaker demand for their TVs may not be able to regain ground lost to Samsung and Apple Inc. That's prompting Sony and Panasonic to focus on sectors including medical devices, solar panels and rechargeable batteries in an effort to revive earnings.