Toshiba formally and finally exits laptop business
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Beyond that, Toshiba was a company in crisis. They announced all sorts of forward looking partnerships via press releases and had powerpoints about them, but allocated ZERO budget to implement them.
They ordered their existing units (seemingly hundreds of business units) to stay the course on obsolete and non-competitive products that were not generating revenue any longer.
Their cloud and "chip to cloud" plans were Potemkin villages, devoid of tech or investment.
Their PC division was non-competitive with flash storage, even though Toshiba's disk division INVENTED flash storage (and that was unpopular in that division--it went to market with much opposition, driven by ONE guy).
Toshiba basically played fortress Japan, where they made handshake deals with other moribund Keiretsu would just cross sell to each other.
They were being out innovated on all fronts, and were paralyzed to make the big changes, as the culture was one of never rocking the boat, and hanging on till retirement. The dream was to retire and perhaps be asked to consult back to the company.
The same thing was going on with the other firms there, like Sony et al. Disruption, the cloud, open source and innovation just destroyed a firm with an amazing historical legacy.
That said, if they are up against a real wall, they will be pulling the rabbits out their rears (ie fraud) and it will be a problem.
But then you get a secondary effect: a kind of 'coverup cancer' which spreads through the social system, nobody willing to let it surface.
The European CEO of Japanese Olympus has a pretty intriguing story about this. Uncanny stuff about the depth of the fraud, like being in an episode of Twilight Zone.
The corruption is way, way more than just a few leaders - it's entire networks of systems and leaders, everyone covering for one another.
I suspect there are vast systematic hidden problems in Japan.
Germany has a little bit of this.
For some cultures, it's hard to understand the actual value of 'Chapter 11'. It's really an amazing bit of commercial policy that bankruptcy protection.
Someone needs to write a book on all the various ways we hide problems. The US Fed takes on Trillions of toxic assets. The Canadian economy prints money to new migrants buying homes as a form of 'spending the future now' in a giant Ponzi scheme. China makes up numbers willy nilly. Japanese hide it inside private networks. Etc..
I have worked for a Japanese client (big firm, I will not name them). I think it is a miracle that Japanese innovate at all. Their hierarchies are extra rigid, and promotions are more or less dependent on seniority. It was difficult to find any tech manager who was not around 60 years old. Peer-to-peer email from our firm to Japanese engineers was strictly forbidden. Except for the money involved, it was like a humorous game of Chinese whispers - a perfectly legitimate technical point raised will come back as completely illogical gibberish because it was been distorted by layers of management in between.
Engineers at my (Indian) firm in 2001 were saying that Sony's days are numbered, and Samsung will eat their lunch. I refused to believe it since South Korea had just gone through a major crisis. 20 years later, it is patently clear that they were understating the trend.
The often deserving worship of Japanese culture that many indulge in, leads to vast blind spots about Japan's cultural disadvantages.
The engineer would often then defect and seek a meritocracy where they are valued by their work and not seniority.
A quick lookup for the Flash inventor backs this. Fujio Masuoka is now CTO of a company in Singapore.
Shuji Nakamura, the inventory of the blue LED is the other primary example. He is now professor of Materials at the University of California, Santa Barbara, with 208 US patents and a Nobel prize. He was in the news a lot, and stirred up much needed debate in Japan regarding who owns the work of an employee.
But one counter example is Nintendo. Shigeru Miyamoto is the genius behind Super Mario, and him and his small team are responsible for so much of their hierarchy's success. Nintendo stands tall to this day.
Sony is a mixed bag, but their gaming division is still winning.
Korea is actually known to be incredibly similar to Japan, and according to one theory the only reason why Korea outpaced Japan is because the Japanese were too busy addicted to Pachinko. That may sound absurd, but not if you've seen how ubiquitous Pachinko is, and it's pure gambling with all the dangers of addiction and lives in shambles. Ironically, 80% of the parlors are owned by Japanese Koreans.
Hello from Japan. When people from the Westernized world talk about Japan, I find it interesting to hear what everyone has to say. Some are true, some are ridiculous, some are "facts" people echo on forums. This in not true. This is ridiculous.
Do you think everyone is so addicted that we do nothing else? Do you understand that the addicted to pachinko is a small percentage and these people would be addicted to something else and be un-productive anyway?
Its not a matter of "people". Korean companies have outpaced Japanese companies, because Korean company are more global. And nice for them. But Pachinko has absolutely nothing to do with that.
Within companies, it really depends. As you point out, Nintendo is a good example of a company that is actually averse to not taking risks, and doesn't get humbled by failure. They insist on reinventing themselves and trying crazy things even when they'd probably do just fine sticking to something easy and proven. Their senior leadership drives that. They're far from the only company like that in Japan, but one of the few in tech.
Japan's big slow companies are good at the kind of innovation that takes decades of slow, continuous refinement and constant long-term funding rather than sudden pivots and breakthroughs. Metallurgy and materials science, chemistry, and precision engineering are fields where those big heirarchies have done well for themselves.
Nintendo trusts the innovators who insist on innovation. I would love to believe this is the winning formula, and maybe many Japanese companies do, but the problem with that is when the innovators are wrong. How often does a researcher invent exactly what the market needs? So in between hits, the hierarchies must figure ways to feed themselves. And some self destruct through corruption (Toshiba) and internal conflict (Nissan). Some get bailed out (Sharp, JAL). Sony's gaming division has been bailing out their other businesses.
In the case of Xperia, the innovation and product is there, but Sony miserably failed at marketing and being competitive in the US core market. Sony marketing is legendary in Japan, but they have never successfully translated that magic to the US. In Japan, the Xperia is killing it.
https://onlineshop.smt.docomo.ne.jp/ranking/index.html?color...
Not really a counterexample. If you have one hypertalented person that rises to the top of the otherwise moribund system, sure they can work miracles ... until they retire. Moreover, their blind spots become the company's blind spots; e.g. missing out on network features like cloud saves that Nintendo is criticized for. It's not a generally applicable model.
Especially those with longstanding connections to the North.
It's basically a way to create less risk and stress for employees. As long as they put in the work (and yeah, they're ALL expected to work) they get job security and get promoted in a predictable way.
If they show that they're actually good at their jobs, they don't get more (or less!) promotions, they just get to work on the more interesting projects and are given more free reign.
Of course, I expect this would only be true in the companies that are not sinking. And it's not like the USA doesn't have its share of former tech giants getting torn apart by more competent competitors (anyone remember Yahoo? HP? Is IBM on the upswing or downswing right now?).
What I feel is this is because policy created which reduces competition and increases monopoly. It is hard to find companies now which can be started with like Soichiro Honda or like Akio Morita and Masaru Ibuka now. This trend is going on everywhere.
I can't find the source where I heard this, but it was an interview with several "average" Japanese people concerning Japanese work culture.
[1] https://www.nytimes.com/2013/08/17/business/global/layoffs-i...
Woodford works his way up through the company ranks. He's hear of Olympus Europe when he gets made CEO of the whole company. He goes over to Japan.
Soon after becoming CEO an investigative journalist for a small magazine, Facta, discovers some strange acquisitions Olympus made. Woodford questions the board. They tell him not to worry.
Woodford starts digging and covering his back. He gets fired. The Japanese board state "cultural differences" and no journalist questions this.
News of the fraud finally starts to break. 1.5 billion USD of losses were hidden over fraud which took place over decades. A few key board members get suspended sentences. Some members of the board remain on the board even after the dust settles.
His book goes into more detail about how companies, banks and journalists are all complicit in a system that allows fraud to go unchecked. Even after the details were published they were still selling this one under the rug.
(A bit of a tangent but it's hard not to sympathise with Kelly and Ghosn of Nissan. The key players at Olympus never saw the inside of a jail cell but Ghosn got half a year of solitary before any conviction.)
Darker blue is operational profit and lighter blue is sales total in ¥100mil.(~$mil.)
Just like an oscillating power circuitry! Can’t make this up and they couldn’t have been more engineering oriented than this.
Edit: I believe the tweet is referring to the 2015 accounting scandal (listed on wikipedia here[0]), more information on how it happened here[1].
From what I understand, the oscillations come from the fact that corporate leadership handed down profit targets for business unit presidents to meet, with the expectation that failure to meet them = you're fired. So the business unit presidents worked with accountants to fudge the numbers at the end of every quarter to meet the unrealistic targets. Then the numbers would revert back to reality at the start of the next quarter. Corporate leadership was only looking at end-of-quarter numbers so they just kept increasing the (already unrealistic) profit targets year after year? Or maybe they understood what was going on but liked the effect it was having on their stock options/bonuses/whatever, so they kept perpetuating the fraud? But then again, why allow profits to revert back to reality, why not fudge profits all the way to hide the oscillations?
My vote is on corporate leadership incompetence. When you have a dictatorship-like culture of strict obedience, you start having an information propagation problem. Your underlings will suppress information they know you won't like (because you'll punish them) and will only feed you the truth when convenient. They will also outright lie if they have to, to save themselves from your wrath.
[0] https://en.wikipedia.org/wiki/Toshiba#2015_accounting_scanda...
[1] https://www.investopedia.com/articles/investing/081315/toshi...
So impossible targets set late. You basically tell them "be fired or cheat". Then the corporate culture, or maybe Japanese work culture, means no communication that the impossible is being asked. So, save your skin.
Stupid maneuvers all around.
It's a pity that Wells Fargo has not yet exited the banking business :)
[0] https://en.wikipedia.org/wiki/Wells_Fargo_account_fraud_scan...
So future contracts projected into the figures at present had to stay at that point in time in case they materialize later. That led to sharp decline after the numbers for one term was finalized.
Obviously Profit can't exceed Revenue, but how did they do this?
The tweet I quoted was about a newly discovered incident but the chart is from 2015. Sorry but that was the best link I could find at that time.
In that instance at P.C. sales in 2008-2015, IIRC, the employees were forced to “do challenges” to meet the predetermined goals by the end of fiscal year(31st March in Japan). But the target wasn’t realistic and “challenges” became a synonym for various manipulation inside the corporate, from relabeling future sales to forging documents. That led to yearly pulse right at the end of FY and scheduled YoY growth on paper.
The profit only exceeded the monthly revenue, not the quarter average.
The books were cooked. The profits oscillations in the tweet graph aren't natural, and the peaks were inncreasing.
At one point the profits were even greater that revenues.
I'm still not sure exactly what's wrong with it. The original hard drive ended up with a corrupted MBR, then the replacement drive i put in ended up with the same thing within a day. I just ended up retiring it and getting a new one.
Though for a while though i was keeping that thing on life support by running a linux distro partitioned across 4 usb flash drives just so i could keep using it for a bit longer. I managed to recover everything off the drives that way too.
By comparison, the acer i replaced it with ended up needing a screen replacement within 2 years and that thing just pretty much hung out at home.
My only complaint is the cheap plastic case has deteriorated so it's partially held together by tape now. I also had to replace the screen hinges a few years ago.
But compared to the Acer before it (2008 bad Nvidia GPU) and my wife's trash HP laptop the Toshiba has been worth every penny.
A shitty courier company apparently loaded a fridge over one corner of my laptop while transporting it (don't ask why or how it happened) and the end result was the laptop broke at the corner (imagine loading 200kg on side of a fibre glass plate).
Long story short the hinge popped off, the laptop's display bottom totally teared up and yet lo and behold it's still working since the last 5 years. It looks like a Frankenstein laptop but it works flawlessly and never has given me any issues. My asus laptop on the other hand.. :/
Just looking now at wikipedia, I'm sure that we sold the T1000 [1] and T1200 [2] but I'm not sure if we ever sold the T1100 [3] (their first model). We also sold the T3100 [4] which had a gas plasma screen that was quite a wondrous thing at the time. It was also very expensive. They were mostly bought by higher level executives as a status symbol. My father kept one for personal use too.
It was a very profitable business to be in at the time - margins were high, unlike the razor-thin margins of today. But my dad didn't capitalise on it as well as he should have. He overpaid his sales staff when they really weren't having to make much of an effort to sell such a hot item. And he didn't pay enough attention to the accounts so that when the recession of the early 90s arrived and government departments stopped buying he hit a cashflow problem and the company went bust. But there were a few good years before that and I still remember the Toshiba laptops of that time quite fondly.
[1] https://en.wikipedia.org/wiki/Toshiba_T1000
[2] https://en.wikipedia.org/wiki/Toshiba_T1200
This response by the US would have hurt both Japan and the US, while not so much affecting the USSR who already had their quiet propellers. It probably did hurt US consumers, but it didn't end up hurting the US government which ignored its own ban! https://www.washingtonpost.com/archive/business/1988/12/15/t...
https://www.youtube.com/watch?v=FSycqXoxIzI
No company would even joke about behaving like that on an airplane today.
Afterwards it found a second life as my favorite travel / bedside laptop until a glass of water claimed its life a few years back.
But yea, being young, working with my hands, and having significantly less after work mental baggage was all awesome.
Doing painful physical labor 40 hours a week, but barely being able to afford rent and having no sick days or health care makes it a pretty poor trade in the big picture.
There really are two Americas, and having lived in both, it is much better in the bubble than on the outside.
Everyone is different so ymmv, but that is my experience.
It takes a certain kind of person, and I'm part of that group ;-)
But I like talking to people and enjoyed interacting with customers and regulars.
(1) I use it primarily for light browsing, email and YouTube, so it doesn't do any heavy lifting.
I bought protective shells for them and that made a huge difference in longevity. The kids would tend to pick up their computers by the top/screen and could crack the screen or knock a connector loose.
The speakers on it are also decent, which my kids appreciate.
I really don't see how people can use the typical Chromebook with its 1366 x 768 screen except that it would make you focus solely on what was on screen.
Prior to that I acquired this guy donated through the local 2600 chapter https://en.wikipedia.org/wiki/File:Epson-l3s-and-psu.jpg and submitted an nmap fingerprint for its DOS-based, parallel-port driven TCP/IP stack! Good times.
And... what dodgy things are you currently involved in?? I'm guessing you never paid for your RAR license either. /s
Also got a job offer to work at McMurdo Station on the south pole after getting them up and running on a few laptops. Never took it due to some matrimonial commitments, but did get a cool hat and pin out of the deal.
Good times. (It's Doogie if anybody that worked then is in here)
But what I really wanted (and still occasionally look up on eBay) was one of the tiny Librettos. Never took the dive though and as the years passed the spec became harder and harder to justify.
I suppose I shouldn't talk of it in the past tense. After all, I still have it, and it still works after all these years.
I had a couple of Dells after that but they never felt as robust as the Toshiba.
The 320CDT came with Windows 95 but I got a $200 or so Toshiba store credit in a class action settlement because of a floppy drive problem with the 320CDT that I never actually experienced. I used that to buy Windows 2000 which ran reasonably well on the 96MB of RAM I have in the 320CDT.
My next laptop was a Satellite Pro 6100 which was a truly awful piece of hardware... got sent in for repairs multiple times and never worked right.
They were the best at the time.
It couldn't do both at the same time.
It felt quite plastic though, nothing like a Macbook Air (which I got pretty soon after). Mechanical drive too, I seem to recall - I still have it upstairs and have it pencilled in as a first Linux laptop for my son.
That was the first computer I owned that earned itself back inside of a month.
Then IBM became king with the ThinkPad.
It's a shame they've exited when they used to have such innovative machines.
I remember the fun I had playing games, learning to program in basic, and writing reports with WordPerfect 4.2.
Toshiba had potential.
I reckon all the laptops I was exposed to in the early-mid 90s through school and my father’s work were Toshibas, to the point where I may even have thought Toshiba was the only company that made laptops.
Seeing this news today, my reaction is “Toshiba still makes laptops?”
They really could win a niche of ultraportable laptops.
RIP
https://www.pcworld.com/article/3056030/proposed-toshiba-fuj...
Looks like the answer is 4 years.
The last time I was in Yodobashi Camera, I had a hard time finding any electronics that were actually made in Japan. I even asked the staff about it.