After selling home appliances, medical, semiconductor and other businesses, Toshiba will sell its notebook business this time. On August 10, it was reported that Toshiba transferred all shares of DYNABOOK Inc., a notebook computer business company, to sharp, so far, Toshiba completely withdrew from the notebook computer market. As the founder of the world’s first notebook, behind Toshiba’s failure is the helplessness to fill the fund deficit, and it is also the strategic foreshadowing of turning from b-end to C-end.
on August 10, according to the verge news, Toshiba recently announced that its remaining 19.9% shares in DYNABOOK Inc. had been transferred to sharp.
in June 2018, Toshiba transferred 80.1% of its outstanding shares in Toshiba client solutions Co., Ltd. to sharp, which also renamed the company DYNABOOK Inc. This means that DYNABOOK Inc. becomes a wholly owned subsidiary of sharp.
according to public information, Toshiba will have at least $92 million to rebuild its PC business. The reporter of Beijing business daily contacted Toshiba for an interview. As of the time of publication, no reply was received.
although there are few Toshiba notebook products in the world, in fact, the founder of the world’s first real notebook computer is Toshiba. In 1985, Toshiba launched thorn EMI ligator, which is known as the world’s first mass-produced and listed laptops, which can be called “the father of notebook computers”. Since then, Toshiba has expanded its product line to satellite, port é g é and once became the world’s largest notebook computer manufacturer.
in 1991, Toshiba released the first commercially available Toshiba t3200sxc with a color TFT display screen. Later, Toshiba launched a popular satellite range, and the ThinkPad, which had not yet been acquired by Lenovo, was the model that could compete with the satellite series.
in the 1990s and the beginning of the 21st century, Toshiba won the first place in global sales for seven consecutive years. However, after entering the 21st century, ThinkPad, MacBook Air, Dell, HP and other products have gradually won the favor of consumers, and Toshiba has lost its competitive advantage with the gradual increase of competitors.
in the PC market, Toshiba’s sense of presence is getting lower and lower. When selling shares to sharp, Toshiba’s sales in the PC market had fallen from a peak of 17.7 million units in 2011 to 1.4 million units in 2017.
“in fact, selling computers and other loss making businesses is not a bad thing for Toshiba. On the one hand, computer business is no longer the core business of Toshiba. Since fiscal year 2014, Toshiba has stopped retail sales in many emerging market countries, and continues to sell B2C computer products only in Japan and North America. ” Liu Yun, a visiting researcher at the Japanese Research Institute of Nankai University, told reporters.
interestingly, sharp, the receiver, is very optimistic about DYNABOOK. Previously, sharp’s chairman and chief executive officer, Dai Zheng Wu, said publicly that the profitability of sharp DYNABOOK business would be considerable soon after the first transaction in 2018. She also said the subsidiary could be listed within a year.
in 2006, Toshiba hoped to enter the nuclear power industry through the acquisition of Westinghouse Electric Company of the United States. At that time, Mitsubishi and Hitachi also had plans to bid. In order to compete with its peers, Toshiba increased capital investment in the bidding process, and finally acquired Xiwu electric with a three times premium of $5.4 billion.
at that time, not only the Japanese government, but also the world was encouraging nuclear power construction. Unexpectedly, the leakage of Fukushima nuclear power plant in 2011 directly led to the global cold of nuclear power industry, and the nuclear power business of Toshiba suffered a fatal blow. In addition to the cancellation of some orders, the cost of the remaining construction orders rose all the way, and the construction period was also repeatedly delayed.
despite the blow, Toshiba was still optimistic about the future of nuclear power business. In 2015, Toshiba acquired another CB & amp; I nuclear electronics company through Westinghouse Electric, which had been strategic partners for many years and jointly contracted nuclear power plants in Georgia and South Carolina in 2008.
the nuclear power business has been in a slump, resulting in the rising construction costs and the extension of the construction period, which has caused serious differences between Westinghouse Electric and CB & amp; I on the cost sharing issue. Toshiba, in order to “calm things down”, acquired CB & amp; I nuclear power business subsidiary through Westinghouse Electric for us $0 in 2015.
what we didn’t expect was that after the merger and acquisition, the total liabilities of Westinghouse Electric rose all the way, leading to Toshiba’s loss in 2016 even exceeding that during the financial crisis in 2008.
during this period, Toshiba broke out another major financial fraud scandal with a time span of seven years, the participation of three presidents, and the amount of fraud reached 1.9 billion US dollars. According to public data, from 2008 to the end of 2014, Toshiba falsely reported a pre tax profit of 224.8 billion yen (about 12 billion yuan), more than 30% of the pre tax profit in these seven years.
the direct result of financial fraud is a huge fine of 7 billion yen (about 460 million yuan). In 2017, Toshiba sold Westinghouse Electric Company in order to avoid further insolvency. And the continuous heavy blow also pushed the electronics industry giant into delisting danger.
in order to save itself, Toshiba had to sell its assets to fill the debt hole. In March 2016, Toshiba transferred 80.1% of the shares of Toshiba living appliances Co., Ltd. (tlsc), the main body of its white appliance business, to Midea Group; in December of the same year, Toshiba sold its medical business to canon for 39.5 billion yuan.
the most valuable part of Toshiba is the flash memory chip business, which has the second largest memory market share in the world. In February 2017, Toshiba released to the market the news of divestiture of flash memory business, establishment of subsidiary Toshiba storage company and sale of its majority equity.
as soon as the news came out, it immediately attracted all kinds of capital competition. Key players in the industrial chain, such as SK Hynix, a South Korean chip manufacturer, Meiguang technology, western data, head user of flash memory chips, and Foxconn, a precision electronics manufacturer in Taiwan, have thrown out olive branches. In the following half a year, several forces around the bidding launched many rounds of game. In September 2017, the deal finally cost $18 billion to the consortium led by Bain Capital of the United States.
in fact, Toshiba is not blindly “selling”, which also implies the transformation of Toshiba. As early as 2016, Toshiba said it would focus on chips, nuclear power and social infrastructure.
the change of Toshiba’s business is the step of stripping to C and moving to B business. Ren Guoqiang, senior partner of Roland Berger, believes that Toshiba has completely lagged behind in the to C field. The large-scale divestiture of Toshiba’s business in the to C field shows Toshiba’s determination to be a strong man. Toshiba has a certain technical reserve in the new main field, and more needs to be considered is how to convert the technology reserve into business revenue.
after the sale of semiconductor business, Toshiba’s net profit exceeded 800 billion yen in 2017 fiscal year, turning losses into profits for the first time in four years. Toshiba President gangchuanzhi said that after the sale of semiconductor memory business, Toshiba will become a “social infrastructure business oriented enterprise” such as elevators and other building related businesses and power generation systems.
However, for Toshiba, which used to be very popular, it has yet to find a business with an annual profit of 100 billion yen, and it is not clear to what extent the income of the ICT Department that carries out artificial intelligence and Internet of things can expand.