According to Reuters, Sharp Corporation today released the 2019 first-quarter financial report as of the end of June. Because of the sluggish performance of electronic equipment and television business, Sharp’s first-quarter operating profit is quite low. Honestly, we have been waiting for such a result.
In fact, Sharp and its parent company Foxconn have been affected by the slowdown in global consumer electronics demand due to specific factors. Even taking into account the global changes, Foxconn is still the world’s largest consumer electronics manufacturer.
In the first quarter, Sharp’s operating profit was 14.61 billion yen (about $13.382 billion), much lower than the 24.8 billion yen a year ago. In contrast, the average estimate of five analysts from the financial data service provider Refinitiv is 18.84 billion yen.
Currently, Sharp provides sensors, camera modules and screens for the Apple iPhone. For the entire fiscal year 2019, as of the end of March next year, Sharp will continue to maintain its full-year profit target of 100 billion yen, slightly higher than analysts’ average forecast of 90.42 billion yen.
In addition to Sharp, in the quarter ended June, Panasonic, Canon and robot manufacturer Fanuc and other Japanese technology companies saw double-digit declines in operating profit.
The downturn in Sharp’s performance is also at a time when iPhone sales are falling. In the third quarter ended June, Apple’s iPhone global sales fell 12% to $25.99 billion, compared with 17% in the previous quarter.
So logically, when Sharp’s major partner-companies such as Apple improve their sales, this company will get more as well.