Risk of bearing costs associated with the recall and discontinuation of production and sales of a major business partner's smartphone
First written in FY2017-Q2. 4 of 4 entries say "Materialised", first in FY2017-Q2. Latest entry: FY2018.
No other company in this theme has enough history to compare yet.
- FY2018MaterialisedAnnual report
「Mass-production shipments for Samsung's latest model, the Galaxy Note8, proceeded smoothly, but sales were below the same period of the previous year because the impact of demand for the previous model, the Galaxy Note7, having disappeared in the previous period continued into the current period.」
The loss of demand for older models resulting from the Galaxy Note 7 quality issue and production suspension continued to be reflected in the current period as lower smartphone-related sales. - FY2017MaterialisedAnnual report
「The business was significantly affected by the production suspension resulting from the Galaxy Note 7 quality issue. Sales also fell well below the year-earlier level, partly because of the stronger yen.」
The major business partner's smartphone quality issue and production suspension became apparent over the full year as lower sales for the Galaxy Note 7 and a decline in revenue from the Technology Solutions business. - FY2017-Q3MaterialisedAnnual report
「<Smartphone pen and sensor systems> The business was significantly affected by the stronger yen. Sales declined year on year, partly because sales for the Galaxy Note 7 were affected by the suspension of production resulting from a quality issue at the customer.」
The major customer's quality issue and production suspension were reflected in the results as lower sales for the Galaxy Note 7 and a year-on-year decline in revenue from the smartphone business. - FY2017-Q2MaterialisedAnnual report
「A recall issue arose involving a smartphone incorporating our products as components at one of our major business partners. Following this, the business partner announced in October 2016 that production and sales of the smartphone would be discontinued. Negotiations are currently under way regarding responsibility for some production costs that had already been incurred as of the announcement, and it is difficult to reasonably estimate the impact on our Group's financial position, operating results and cash flows.」
A recall and production and sales discontinuation actually occurred for a major business partner's smartphone, and responsibility for production costs already incurred remains under negotiation, making the financial impact impossible to estimate.