Apparently it is not so much the tellies that have let Sharp down but the downturn in its smartphone display business. This is so bad that it has had to get a bank bailout.

The electronics company is expected to report an operating loss of about $282 million for the quarter, compared with a profit of a year earlier. Quarterly sales were expected to fall by 3.2 percent.

If the rumours are true then Sharp has done worse than markets were expecting, and shares in Sharp fell 3 percent in morning trade.

Sharp has struggled to cope with falling prices for liquid crystal displays sold to smartphone makers. In May, it secured a $1.9 billion bailout.

Sharp's earnings for the July-September period would have to improve "significantly" for the company to reach its targeted operating profit for the April-September half, the Nikkei said.