In Japan, luxury toaster maker’s ill-fated smartphone foray craters stock price as it halts handset sales

Retailing for US$908, the ‘Balmuda Phone’ came in a plastic case, was pricier than an iPhone 13 mini and had a processor usually found in budget smartphones

Balmuda’s shares jumped when its smartphone plans were unveiled in May as a new growth phase for the company. The shares have since lost half their value

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Balmuda CEO Gen Terao, whose company’s design focus was inspired by Apple’s Steve Jobs, holds the ‘Balmuda Phone’ at a news conference in Tokyo in November. Photo: Reuters

Published: 2:17pm, 11 Jan 2022Updated: 2:18pm, 11 Jan 2022

A foray into smartphones by Japan’s Balmuda Inc, 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 on Tokyo’s start-up index in December 2020, fell as much as 10 per cent in Tuesday trading, a day after the firm said it has paused sales because of 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, which is dominated by 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 (US$908) the “Balmuda Phone”, which is manufactured by Kyocera, 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.