Funai Back to Operating Profit, To Stop CRT TV Production in 1-2 Yrs

[Dave J]

Credit to JBlacklow over at Blu-ray.com for locating this article.

Funai Back to Operating Profit, To Stop CRT TV Production in 1-2 Yrs

Funai Electric Co Ltd has posted operating income for the first time in three quarters in the April-June 2008 quarter[...]In the DVD equipment business, DVD player sales declined 45% YoY to ¥5.7 billion and DVD recorder sales also dropped 14% YoY to ¥4.3 billion. On the other hand, BD player and set top box (STB) businesses, which Funai recently started, contributed to the segment sales.

BD player sales totaled ¥2.1 billion, while STB sales reached ¥6.1 billion. The Blu-ray player business has broken even, already covering development costs, Funai said.

"The market still consists of a small number of manufacturers. Having successfully joined the frontrunners significantly helped with breaking even," Sakata said.

[Philnerd]

So Funai has introduced a single BD model a few months ago which was branded by Magnavox, Best Buy and Sylvania (did anyone even buy that one yet?) in the $300 range and they've already covered development costs?

This tells me we've definitely been paying way too much for our players for way too long.

[zombieflanders]

Such is the nature of the CE business. I'm sure we were all paying too much for those $500 DVD players, too, but we're not really complaining now.

[Jimbo976]

Wow - i'm sure I read on these boards that nobody was buying stand alone Blu-ray players - especially the non-top brand ones. How can this be?

Maybe Funai is not telling the truth on their financial reports?

[ack_bak]

Very interesting find. You guys know what this means right? Expect some price drops in Q4 and Funai really pushing these players closer to the $199 range.

[Philnerd]

Originally Posted by ack_bak

Very interesting find. You guys know what this means right? Expect some price drops in Q4 and Funai really pushing these players closer to the $199 range.

Exactly, if these guys have recovered R&D within the short time frame that these players have been out at the $300 price point, there is no reason to not expect $200 players for Q4. I'll be on the lookout to replace the bedroom Samsung 1400, and $200 or so will probably do the trick.

Normally I'd put the 1400 into another room, but I think I might cycle it to some friends and help give a little extra push for the format.

[Philnerd]

Originally Posted by zombieflanders

Such is the nature of the CE business. I'm sure we were all paying too much for those $500 DVD players, too, but we're not really complaining now.

I did when they were $500

[ack_bak]

Originally Posted by Philnerd

Exactly, if these guys have recovered R&D within the short time frame that these players have been out at the $300 price point, there is no reason to not expect $200 players for Q4. I'll be on the lookout to replace the bedroom Samsung 1400, and $200 or so will probably do the trick.

Normally I'd put the 1400 into another room, but I think I might cycle it to some friends and help give a little extra push for the format.

There are reports of the Funai players being found at Sams Club for $259 with an HDMI cable now. The Insignia player is now $279 at Best Buy. I think $199 for the holidays is looking more and more realistic. If I can find one of these players for $149-199 during a BF sale, I may have to try and get one.

[C.S.Strowbridge]

Originally Posted by Philnerd

Normally I'd put the 1400 into another room, but I think I might cycle it to some friends and help give a little extra push for the format.

I gave my first Blu-ray player to my sister, but she's thinking of upgrading and she might pass mine to my parents. One player = 3 converts.

[ack_bak]

Someone else in another forum (kudos to h0mi) mentioned this, but you also have to factor that Wal-mart did not start promoting these Magnavox players until June and Best Buy did not start carrying the Insignia players in most of their stores until June either. Now we have the Magnavox player at Sams's Club for $258. That makes this report all the more impressive when you consider it covered April-June only and the players really started showing up enmasse in June.

[mikemorel]

Originally Posted by Jimbo976

Wow - i'm sure I read on these boards that nobody was buying stand alone Blu-ray players - especially the non-top brand ones. How can this be?

Because nobody IS buying blu-ray standalone players.

2.1 billion yen = $19 million.

$19 million /3 months = $6.3 million/month.

At $240 wholesale, that's about 26,000 players per month, worldwide.

Contrast that with sales of DVD players in the same period last year - about 1.5 million players per month, in the US alone.

26,000 "bargain" blu-ray players per month worldwide is terrible.

[Hokis4ever]

Mike... just curious... how many DVD players were sold 2 or 3 years into its life cycle compared to Blu-Ray? I really am curious.

[mikemorel]

Originally Posted by Hokis4ever

Mike... just curious... how many DVD players were sold 2 or 3 years into its life cycle compared to Blu-Ray? I really am curious.

There were 4 million DVD players sold in the US in 1999. So I'm guessing about 10 million worldwide. In 2000, that doubles to 8.5 million in the US, then 12 million, then 17 million. In 2003 there were 22 million players sold in the US.

Blu-ray right now has very little competition for high def delivery. That is about to change very soon.

[bt12483]

Originally Posted by mikemorel

Because nobody IS buying blu-ray standalone players.

2.1 billion yen = $19 million.

$19 million /3 months = $6.3 million/month.

At $240 wholesale, that's about 26,000 players per month, worldwide.

Contrast that with sales of DVD players in the same period last year - about 1.5 million players per month, in the US alone.

26,000 "bargain" blu-ray players per month worldwide is terrible.

1) Where did $240 come from, your ass?

2) The player came out in May. So it has been 78k in 2 months.

3) Add that to 800k PS3s and ~similar sales for the Samsung 1500, etc. and we are looking at 1-2 million capable players in ~2-3 months time.

Keep trying loser.

[vinnie97]

Originally Posted by mikemorel

Blu-ray right now has very little competition for high def delivery. That is about to change very soon.

Now you're beginning to sound like all the PS3/BD zealots you championed against when HD DVD was still viable.