Risk of Price Competition and Failure to Pass Higher Purchase Prices Through to Selling Prices
First written in FY2016. 14 of 30 entries say "Restated". Latest entry: 2026-08-13.
Elecom moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2021: 18 of 28 companies on the "Worse" side.
12 other companies' latest entry also says "Mitigated".
- 2026-08-13MitigatedEarnings
「Profit increased as a result of profit-focused initiatives, including the launch of high-value-added new products, price revisions, and stronger cost analysis and management by product, channel, and customer.」
Although higher procurement prices and foreign exchange effects continued to raise costs, profitability improved through price revisions, new products, and stronger cost analysis and management. - FY2026MitigatedAnnual report
「Gross profit increased as a result of the effect of higher revenue and the success of profit-focused initiatives, including the launch of high-value-added new products, price revisions, cost reductions and inventory optimization for certain products, which have continued since the previous fiscal year and earlier. For our company, which procures products from overseas in US dollars, the yen-denominated amount, including forward exchange contracts for dollar-denominated transactions, increased from the previous consolidated fiscal year and became a factor driving up costs.」
While yen depreciation, the competitive environment and higher costs continued, gross profit and the margin improved through price revisions, cost reductions, new products, inventory optimization and the effect of higher revenue. - 2026-05-15MitigatedEarnings
「To address higher costs caused by the weaker yen, we thoroughly implemented measures to improve margins through new products, cost reductions, price revisions, and discount control.」
The company continued to implement and further develop a combination of new products, cost reductions, price revisions, and discount control to address rising costs. - FY2026-H1MitigatedAnnual report
「Profit increased as a result of the effect of higher revenue, the success of profit-focused initiatives such as the launch of high-value-added new products, price revisions and cost reductions that have continued since the previous fiscal year and earlier, and an improved competitive environment for peripherals.」
In response to price competition and higher procurement prices, price revisions and cost reductions continued, while an improved competitive environment for peripherals also contributed to the improvement in profit. - FY2025-H1MitigatedAnnual report
「Gross profit increased from the same period of the previous year as a result of profit-focused initiatives, including price revisions and cost reductions, which have continued, and the effect of higher revenue. For our company, which procures products from overseas in US dollars, the cost in yen terms increased as the yen weakened, and some products were also affected by the intense competitive environment.」
While yen depreciation and an intense competitive environment for some products continued, gross profit increased 5.8% year on year as a result of price revisions, cost reductions and the effect of higher revenue. - FY2024MitigatedAnnual report
「Profit increased as a result of profit-focused initiatives, including price revisions such as price increases undertaken since the previous fiscal year, stricter rebate management and the effect of higher revenue. Gross profit margin consequently improved.」
Price revisions and stricter rebate management continued in response to price competition and higher costs, and the improvement in gross profit margin was confirmed for the full fiscal year. - FY2024-Q3MitigatedAnnual report
「Profit-focused initiatives, including price revisions such as price increases undertaken since the previous fiscal year and stricter rebate management, led to an increase from the same quarter of the previous year, and gross profit margin consequently improved.」
The description continued to state that gross profit margin improved through price revisions and stricter rebate management amid higher costs and price competition. - FY2024-Q2MitigatedAnnual report
「Profit-focused initiatives, including price increases undertaken since the previous fiscal year and stricter rebate management, led to an increase from the same quarter of the previous year, and gross profit margin consequently improved.」
It was stated that gross profit margin improved through price increases and stricter rebate management amid higher costs and price competition. - FY2024-Q1MitigatedAnnual report
「Profit-focused initiatives, including price increases undertaken since the previous fiscal year and stricter rebate management, led to an increase from the same quarter of the previous year, and gross profit margin consequently improved.」
It was stated that gross profit margin improved through price increases and stricter rebate management in response to higher costs caused by semiconductor and resource prices and yen depreciation. - FY2023WorsenedAnnual report
「Our Group continues to develop new products and reduce procurement costs. However, delays in developing new products in related product fields, foreign exchange fluctuations and increases in cost of sales due to trends in crude oil and raw material prices may affect our Group's operating results.」
While continuing to develop new products and reduce procurement costs, higher cost of sales due to yen depreciation and rising raw material prices remained factors affecting operating results. - FY2023-Q2MitigatedAnnual report
「Since August, the company has worked on price increases and price reviews for new products, with some effects being seen. However, the impact of gross profit falling below the level in the same quarter of the previous year decreased significantly in the first quarter.」
It was stated that price increases and price reviews for new products had been partly effective in absorbing higher costs. However, gross profit decreased 2.2% year on year. - FY2023-Q1WorsenedAnnual report
「In addition, the recent semiconductor shortage and surging resource prices caused a significant increase in the cost of products in our product lineup, namely PCs and digital products. As a result, gross profit decreased.」
Higher costs caused by the semiconductor shortage and surging resource prices emerged as a decrease in gross profit, making the risk of absorbing higher procurement costs amid price competition more specific. - FY2022WorsenedAnnual report
「Our Group continues to work to reduce procurement costs for components, manufacturing costs and other expenses in order to secure profitability. However, if price competition becomes more intense than our Group anticipates, this may affect our Group's operating results.」
The semiconductor shortage, surging resource prices and higher procurement costs due to yen depreciation were described, making the risk of rising costs and difficulty passing them through to selling prices amid price competition more specific. - FY2022-Q2WorsenedAnnual report
「The market environment is changing rapidly because of supply chain disruptions stemming from the global semiconductor shortage and other factors, soaring ocean freight rates caused by container shortages and labor shortages associated with lockdowns, and surging resource prices, including crude oil prices.」
The semiconductor shortage, soaring ocean freight rates and surging resource prices were described more specifically as external factors affecting procurement prices and logistics costs. - FY2022-Q1WorsenedAnnual report
「Although Japan's economy was showing signs of improvement as vaccinations gradually progressed, it remained extremely uncertain, with the reissuance of a state of emergency due to the resurgence of COVID-19 infections, a global semiconductor shortage, surging resource prices and higher ocean freight rates caused by a shortage of containers.」
Soaring resource prices and ocean freight rates were specifically identified as external factors affecting procurement prices and the cost environment. No details were provided on the company's actual pass-through of costs to selling prices or the amount of the impact. - FY2021-Q3RestatedAnnual report
「During the first 3 quarters of the current consolidated fiscal year, there were no new business or other risks, nor any significant changes to the risks or other matters described in the securities report for the previous fiscal year.」
It states that there have been no new developments or material changes in the risk of being unable to pass higher procurement prices through to selling prices amid price competition. - FY2021-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
It states that there have been no new developments or material changes in the risk of being unable to pass higher procurement prices through to selling prices amid price competition. - FY2021-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
It states that there have been no new developments or material changes in the risk of being unable to pass higher procurement prices through to selling prices amid price competition. - FY2020RestatedAnnual report
「The products handled by our Group are subject to intense, ongoing price competition with competing companies. Accordingly, we may be forced to lower selling prices regardless of our Group's intentions. In addition, if procurement prices rise because of soaring raw material prices or other factors, we may be unable to pass the increase appropriately through to selling prices.」
The difficulty of passing higher procurement costs through to selling prices amid intense price competition continues to be identified as a risk. - FY2020-Q3RestatedAnnual report
「During the first 3 quarters of the current consolidated fiscal year, there were no new business or other risks, nor any significant changes to the risks or other matters described in the securities report for the previous fiscal year.」
It states that there have been no new developments or material changes in the risk of being unable to pass higher procurement prices through to selling prices amid price competition. - FY2020-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
It states that there have been no new developments or material changes in the risk of being unable to pass higher procurement prices through to selling prices amid price competition. - FY2019RestatedAnnual report
「The products handled by our Group are subject to intense, ongoing price competition with competing companies. Accordingly, we may be forced to lower selling prices regardless of our Group's intentions.」
The difficulty of passing higher procurement costs through to selling prices amid intense price competition continues to be identified as a risk. - FY2019-Q3RestatedAnnual report
「During the first 3 quarters of the current consolidated fiscal year, there were no new business or other risks, nor any significant changes to the risks or other matters described in the securities report for the previous fiscal year.」
It states that there have been no new developments or material changes in the risk of being unable to pass higher procurement prices through to selling prices amid price competition. - FY2019-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
It states that there have been no new developments or material changes in the risk of being unable to pass higher procurement prices through to selling prices amid price competition. - FY2019-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
It states that there have been no new developments or material changes in the risk of being unable to pass higher procurement prices through to selling prices amid price competition. - FY2017RestatedAnnual report
「The products handled by our Group are subject to intense, ongoing price competition with competing companies. Accordingly, we may be forced to lower selling prices regardless of our Group's intentions.」
The difficulty of passing higher procurement costs through to selling prices amid intense price competition continues to be described as a risk. - FY2017-Q3RestatedAnnual report
「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
It explicitly states that there have been no material changes to the risk of being unable to pass higher procurement prices through to selling prices amid price competition. - FY2017-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
It explicitly states that there have been no material changes to the risk of being unable to pass higher procurement prices through to selling prices amid price competition. - FY2017-Q1RestatedAnnual report
「During the cumulative consolidated period for the first quarter, no new business or other risks arose. There were also no significant changes to the business and other risks described in the securities report for the previous fiscal year.」
It explicitly states that there have been no material changes to the existing risks related to price competition and higher procurement prices. - FY2016First statedAnnual report
「The products handled by our Group are subject to intense, ongoing price competition with competing companies. Accordingly, we may be forced to lower selling prices regardless of our Group's intentions.」
While stating that it will continue to reduce procurement and manufacturing costs, it identifies the difficulty of passing costs through to selling prices as a risk.