Toshiba Sees Several Billion Dollars in Sony PS3 Chip

ToshibaToshiba is Japan’s largest chipmaker, and they plan to rake in the money thanks to the growing demand for semiconductors for flat-screen TVs and digital cameras. They’re also making the chip for Sony‘s PS3. As they said in June, they expect sales to reach 1.8 trillion yen per year (that’s more than 15.2 billion US dollars) by March 2009 (that’s up from the 1.037 trillion yen or about 8.796 billion US dollars last year).

And the company’s profit? By March of 2009 it will be 230 billion yen per year (that’s 1.95 billion US dollars).

That’s the big news. The rest is more boring sales figures, but the thing that made us sit up and take notice is the difference between sales and profits: 15.2 billion dollars in sales versus 1.95 billion dollars in profits. According to our official QJ Calculator, for every dollar in sales, Toshiba brings home about 12 cents in profit.

Toshiba’s profit margin is only 12 cents. I always thought they make more money than that. But it looks like they either have to raise their prices or lower the cost of making those chips. By the way, the best profit margins are posted by chip makers like Intel and Texas Instruments.

ToshibaToshiba is Japan’s largest chipmaker, and they plan to rake in the money thanks to the growing demand for semiconductors for flat-screen TVs and digital cameras. They’re also making the chip for Sony‘s PS3. As they said in June, they expect sales to reach 1.8 trillion yen per year (that’s more than 15.2 billion US dollars) by March 2009 (that’s up from the 1.037 trillion yen or about 8.796 billion US dollars last year).

And the company’s profit? By March of 2009 it will be 230 billion yen per year (that’s 1.95 billion US dollars).

That’s the big news. The rest is more boring sales figures, but the thing that made us sit up and take notice is the difference between sales and profits: 15.2 billion dollars in sales versus 1.95 billion dollars in profits. According to our official QJ Calculator, for every dollar in sales, Toshiba brings home about 12 cents in profit.

Toshiba’s profit margin is only 12 cents. I always thought they make more money than that. But it looks like they either have to raise their prices or lower the cost of making those chips. By the way, the best profit margins are posted by chip makers like Intel and Texas Instruments.

Add a Comment

Your email address will not be published. Required fields are marked *