Googolplex C-Note University (04/10/11) I’m sure everyone has heard by now of the 9.0 earthquake that rocked Japan earlier this month. The earthquake has caused a national disaster and caused a nuclear catastrophe. More recently Japan felt a strong aftershock with another earthquake of 7.4 magnitude. The country is in a severe crisis and is truly in a sad state.
Japan has the third largest economy in the world and is a leader in electronics exports.
Many major companies like Sony, Canon, Panasonic, Nikon, Nintendo, and dozens of others are based in Japan. Nations around the world including the U.S. depend on Japan for electronic items such as TVs, computers, phones, and so forth. Japan plays a vital role in the production of our consumer technology.
Japan is in really bad shape and there are rampant electronic delays. Sony has said that half of its facilities are closed or operating far below normal output. Sony now foresees delays in its new laptop, the Vaio SA, and in its new hand-held video-gaming system, the “PSP 2″ or NGP (next generation portable). Other Japanese companies are facing similar delays.
Another major export of Japan is lithium ion batteries that go into laptops and cell phones. This is causing a shortage for most cell phone and laptop manufacturers.
So, how does this all affect us?
1. New electronics will probably be delayed by a few weeks or months.
2. Companies that rely on Japanese parts will face shortages.
3. Electronic items may not get price cuts as often as they usually do. (The price of electronic items typically drop
after a few months. However, due to the shortages, these price cuts may not happen.)
It truly is sad to see what has happened in Japan. Economically, the whole world will be affected by Japan’s limited production capabilities for a few months until Japan returns to its normal state.
If you are willing and want to aid Japan, there are several organizations such as the Red Cross where you can donate money. Several technology companies are also donating money to help rebuild Japan.
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