JVCKENWOOD of Japan said the worldwide supply chain problems have caused the company a drop in its aftermarket market share from July through September this year. It said the drop is “not that the price or the product itself has become less competitive,” but rather, due to short supply.
In a formal question and answer session, published here, JVCKENWOOD said its aftermarket backorder for “overseas” regions (so, non-Japanese) amounts to over $177 million (20 billion yen), it said.
When asked about the rising cost of parts in its automotive sector, JVCKENWOOD said it is already raising prices in some markets to keep profits up, and it is working to “curb price discounting.” It will also evaluate its prices every 6 months or annually.
Parts shortages were more severe in the June-August time frame and the company’s ability to secure components for its products improved in October and November. It could not, at this time, predict the parts supply outlook for early in calendar 2022.
JVCKENWOOD said it could improve its profits for the second half of its financial year (October 2021 through March 2022) if it could produce more products. It said it’s first priority is to solve the supply problem.
As reported earlier, for the first half of its financial year (April through September) JVCKENWOOD’s, total company sales (including public service radios and media as well as infotainment) rose to $1.1 billion compared to $1 billion a year ago. In terms of profits, the company narrowed its loss to $2.3 million, down from a loss of $38 million a year ago. Operating income swung to a profit of $18 million compared to a loss of $30 million a year ago.
“It could improve its profits for the second half of its financial year if it could produce more products.”
Did they actually say this?!
We haven’t seen stock of JVCKenwood in all of 2021.Hope 2022 starts off with good production of car audio head units.
We love the JVCKenwood brand/s, but to be honest how they are still a going concern amazes me as they have not had stock of any quantity for the majority of 2021, it is beyond crazy at this point.
If 2022 continues like 2021, just being in business should be top of their list instead of profit numbers. We dealers can’t sell the product if we can’t get it…….prayers for them to figure this issue out in 2022.