Japan toaster startup smartphone foray craters stock price

Kyocera

11/01/2022 05:24

By Sam Nussey
    TOKYO, Jan 11 (Reuters) - A foray into smartphones by
Japan's Balmuda Inc  6612.T , best known for its high-end
toasters, has cratered its stock price with the firm announcing
this week it has halted sales of its poorly received handset.
    Shares in Balmuda, which listed https://www.reuters.com/article/us-balmuda-ipo-idINKBN28Q0DQ
 on Tokyo's start-up index in December 2020, fell as much as 10%
in Tuesday trading, a day after the firm said it has paused
sales due to an unidentified issue regarding compliance with
Japan's technical standards.    
    Balmuda's founder and CEO Gen Terao carved out a niche
selling premium priced household electronics including fans and
coffee machines with a design focus inspired by Apple's Steve
Jobs. 
    However, his entry into the smartphone market https://www.reuters.com/technology/upmarket-toaster-maker-balmuda-launches-smartphone-iphone-dominated-japan-2021-11-16,
 which is dominated by Cupertino, California-based Apple to the
exclusion of Japanese manufacturers, has been met with derision
by gadget reviewers and on social media. 
    Retailing for 104,800 yen ($910) the "Balmuda Phone", which
is manufactured by Kyocera  6971.T , is more expensive than the
iPhone 13 mini, has a plastic case and a processor usually found
in budget smartphones. 
    Balmuda's shares jumped when the smartphone plans were
unveiled in May, in what was intended to begin a new growth
phase for the company. The shares have since lost half their
value.
    "Since the announcement Balmuda has conspicuously lost its
way. There is a growing sense of disappointment," said
Katsuyoshi Sakase, an analyst at Aizawa Securities. 
    A Balmuda spokesperson said the company is paying attention
to reaction to the phone and will continue to work to achieve an
understanding of its business.  
($1 = 115.3500 yen)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Out of service    https://tmsnrt.rs/3f8szIz
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Sam Nussey and Mayu Sakoda; Editing by)
 ((sam.nussey@tr.com; https://twitter.com/SamNusseyRTRS;
+81345632760;))