Retail in Asia

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Toshiba hitches ride on Apple cart to drive rebound

Unlike many beleaguered constituents of Japan Inc, Toshiba, has reason to feel cheerful about ballooning sales at Apple – millions of the iPhones it sells are loaded with NAND flash memory made by Japan’s last big chip maker.

At times as much as two-thirds of memory chips churned out by Toshiba’s plants in Japan will end up in iPhones, analysts estimate. That demand is underpinning income at Toshiba and will likely mean the world’s number two maker of NAND flash chips behind Samsung Electronics will forecast a rebound in operating profit for the business year just started.

Operating profit in the twelve months from 1 April will rise to JPY281.9 billion (USD3.5b), according to an average estimate of 22 analysts surveyed by Thomson Reuters I/B/E/S. For the business term just ended, with earnings crimped by a strong yen, Toshiba expects to report on Tuesday a profit of JPY200b.

(Source: CNBC)