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
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.
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.
Super fries me: is McDonald’s fries ban a supply chain issue or clever marketing?
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.
Balmuda said in a statement that the company is paying attention to the reaction to the phone and will continue to work to achieve an understanding of its business.
