Home / Channel / General Tech / Sharp’s forecast profit margin drops by half

Sharp’s forecast profit margin drops by half

The Japanese company Sharp has revised its forecast for earnings last year, and has also reduced its expected full-year profit by 48%. It is believed that a big factor for the downturn is decreased demand as a result of the COVID-19 outbreak.

Major shifts are happening across the worldwide market as a result of the global lockdown – smartphones are predicted to see a historical decline in production, while tablets shipments are expected to grow 45% in Q2 2020. Other products have also seen shortages, including Nintendo Switch and notebooks.

Now, Sharp – which is mainly known for manufacturing displays and camera sensors – has reduced its predicted full-year profit margin by half. The Japanese company expects that its full-year profit will come in at 52 billion yen/£395 million, which is down from its previous forecast of 100 billion yen/£760 million.

Image credit: Sharp Home USA

The company's net profit has also been hit hard, landing at 20 billion yen/£152 million – 75% less than the previous forecast of 80 billion yen/£608 million. Sharp says that the COVID-19 outbreak has had a big impact across its business resulting in the noticeable decline.

KitGuru says: This news comes as a big blow to Sharp – do you own any Sharp products?

Become a Patron!

Check Also

MSI Summit MS321UP 4K Monitor Review

If you want a 4K screen for work, and not gaming, is this MSI panel worth a shout?