Despite its much-touted alliance with Taiwan's Hon Hai Precision Industry Group, Sharp Corp. is likely to continue drowning in red ink amid sluggish demand for TVs and persistent high inventories, experts said.
Some analysts say Japan's largest maker of liquid crystal displays may log an even bigger year-on-year quarterly loss for the April-June term after logging its largest-ever net loss — ¥376 billion — for the full year that ended in March as a result of harsh competition, particularly from South Korea.
"The April-June TV and LCD market looked severe, so the company will likely release tough business results for the first quarter," said Hiroki Shibata, an electronics sector analyst at Standard & Poor's Ratings Japan K.K.