Profit Pressure from Intensifying Competition and Falling Product Prices
First written in FY2016. 4 of 8 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
Panasonic Holdings moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2026: 40 of 86 companies on the "Worse" side.
34 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The AI market faces risks to growth from adjustment pressure in financial markets if investment fails to generate commensurate earnings growth, as well as delays in monetization caused by infrastructure constraints, including power, and supply constraints, including semiconductors.」
The competition and industry risk section now specifically addresses investment competition in the AI market, delays in monetization, and power infrastructure and semiconductor supply constraints. - FY2023WorsenedAnnual report
「Since 2020, the Group has been reviewing its transaction model with retailers and working to introduce a new designated-price system, beginning efforts to maintain selling prices and develop higher-value-added products. However, if the system is not accepted in Japan's home appliance market, including by retailers and general consumers, the Group's business, results of operations, and financial condition may be adversely affected.」
While the designated-price system was introduced to address the risk of declining product prices, the market's acceptance of the system itself was identified as a new source of uncertainty. - FY2020-Q1WorsenedAnnual report
「We aim to strengthen the business foundation of the Housing business, where market competition is expected to intensify, and to achieve growth in the town development business, where growth is expected.」
The expected intensification of market competition was explicitly identified as a business-foundation risk for the Housing business. - FY2019MaterialisedAnnual report
「The deterioration in profitability from price competition for white goods such as refrigerators and losses from lower television sales could not be fully offset by rationalization efforts and other measures, resulting in a ¥21.9 billion decrease from the previous fiscal year.」
The deterioration in profitability from price competition emerged as a decline in operating profit in the Appliances business. - FY2018MaterialisedAnnual report
「Although higher purchase prices for raw materials and components and declining market selling prices had an impact, profit increased by ¥8.3 billion from the previous fiscal year due to the benefits of higher sales and cost improvements.」
Although pressure on profits from declining selling prices actually emerged in Eco Solutions, it was absorbed through the benefits of higher sales and cost improvements. - FY2017-Q2MaterialisedAnnual report
「The residential solar power generation systems business recorded lower sales after being significantly affected by the contraction of the domestic market and declining prices.」
The residential solar power generation systems business actually experienced lower sales due to the contraction of the domestic market and declining prices. - FY2017-Q1MaterialisedAnnual report
「Despite efforts such as material rationalization, we were unable to offset the impact of lower sales, declining LCD panel prices, and increased upfront development investment in automotive applications such as secondary batteries, resulting in profit of ¥18.2 billion, down 47% year on year.」
The decline in LCD panel prices actually reduced profits in the automotive and industrial systems businesses. - FY2016First statedAnnual report
「The Group faces intense competition in domestic and overseas markets, and may at times find it difficult to set product prices that provide sufficient profitability for the Group.」
The risk of price declines exceeding the benefits of cost reductions and the development of high-value-added products was identified for both B2C and B2B businesses.