# EU carbon border tax will do little to cut emissions, ADB study says
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-07-21
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: ADB Report: EU Carbon Border Tax Won't Cut Emissions
Meta Description: Learn how the Asian Development Bank's report suggests that the EU's Carbon Border Adjustment Mechanism (CBAM) could impact Asian countries but may
URL: https://financedigest.com/eu-carbon-border-tax-will-do-little-to-cut-emissions-adb-study-says-2html

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By Sam Nussey

TOKYO (Reuters) -When SoftBank Group Corp’s CEO Masayoshi Son unveiled the wide-eyed android Pepper in 2014, he painted a vision, once confined to science fiction, of a new era of personal robots in which his company would be the industry leader.

That vision, and the company’s expectations of demand for Pepper, proved overly optimistic, two sources familiar with the matter said. Seven years later, Pepper is clinging to life, with production shuttered and units cobbled together with out-of-date components.

SoftBank will end sales of new Pepper units in 2023 at the latest as those parts become obsolete, according to the minutes of an internal meeting held in Paris in late May and reviewed by Reuters. Sales of refurbished units will continue after this point, [management told staff](https://www.financedigest.com/edf-staff-shareholders-file-complaint-over-management.html "EDF staff, shareholders file complaint over management").

The company disputed the meeting minutes, and Kazutaka Hasumi, [chief marketing officer](https://www.financedigest.com/host-analytics-appoints-chris-labruna-as-chief-revenue-officer.html "Host Analytics Appoints Chris LaBruna as Chief Revenue Officer") of SoftBank Robotics, told Reuters the company is committed to ensuring Pepper survives in some form, perhaps with a new design.

“We will still be selling Pepper in five years,” Hasumi said.

The humanoid was custom designed for SoftBank by Aldebaran, a [French robotics](https://www.financedigest.com/robots-are-making-french-fries-faster-better-than-humans.html "Robots are making French fries faster, better than humans") startup it acquired in 2012. Son hoped Pepper would transform robots from a factory tool into an everyday companion, just as computers had [moved from offices](https://www.financedigest.com/tips-for-moving-office-how-to-use-packing-boxes-efficiently.html "Tips for Moving Office: How to Use Packing Boxes Efficiently") into homes and pockets.

But Pepper’s appeal was limited by its basic functionality: it can make rudimentary conversation, engage in simple interactions through its chest-mounted tablet and sing while gesturing. It would frequently break down, the two sources said.

“Pepper wasn’t upgraded to take on real tasks. There was very little Pepper could do that you can’t do with an iPad,” said Morten Paulsen, head of Japan research at CLSA.

Retailing for 198,000 yen ($1,800) plus a 14,800 yen monthly fee, Pepper was out of reach for most households, and SoftBank was quickly [forced to focus on businesses](https://www.financedigest.com/analysis-uk-crisis-forces-off-kilter-businesses-to-halt-investment.html "Analysis-UK crisis forces ‘off kilter’ businesses to halt investment"). Pepper was met with some early enthusiasm in that sector; shops and restaurants [offered a more predictable environment where the robot](https://www.financedigest.com/digitization-to-offer-stewardship-to-the-robotic-surgery-market.html "Digitization to offer stewardship to the Robotic Surgery Market") could be programmed for tasks such as greeting customers.

But poor relations between Tokyo and Paris hurt Pepper’s development, according to the sources familiar with the matter, and two others. All of the sources spoke on condition of anonymity as they were not permitted to speak to the media.

SoftBank propped up Pepper’s [sales in the early days deploying units in its mobile phone stores said two of the sources](https://www.financedigest.com/monte-dei-paschi-to-have-underwriting-consortium-for-share-sale-by-tuesday-source.html "Monte dei Paschi to have underwriting consortium for share sale by Tuesday – source"). 27,000 units were eventually produced, one of the two sources familiar with the matter said.

Now, sales of Pepper have slumped to less than 100 units in some months, according to documents reviewed by Reuters.

Production at a [Foxconn factory in China](https://www.financedigest.com/exclusive-foxconn-woes-could-hit-at-least-30-of-iphone-nov-shipments-from-china-plant-source.html "Exclusive: Foxconn woes could hit at least 30% of iPhone Nov shipments from China plant – source") was stopped last year as the number of unsold units mounted and the line has since been shut down, the documents show.

SoftBank has fewer than 2,000 Pepper units left, according to the documents. The [heavy batteries](https://www.financedigest.com/northvolt-and-scania-unveil-battery-for-heavy-trucks.html "Northvolt and Scania unveil battery for heavy trucks") that power the robot are decaying and the chest-mounted tablets run on an out-of-date Android operating system without the latest security updates, one of the sources said.

ELECTRIC DREAMS

Son, a self described “big talker”, has a track record of achieving the unlikely, [breaking up Japan’s telecoms duopoly and securing $60 billion in Middle Eastern oil money](https://www.financedigest.com/breaking-down-the-barriers-of-ar-automation-to-help-businesses-save-money.html "Breaking down the barriers of AR automation to help businesses save money ") for his Vision Fund.

The billionaire also has an eye for hits, famously bringing [Apple’s first iPhone](https://www.financedigest.com/apple-falls-on-fears-of-slowing-iphone-14-demand.html "Apple falls on fears of slowing iPhone 14 demand") to the Japanese market. But when his company launched Pepper, it had little experience [designing and building products](https://www.financedigest.com/how-a-strategic-office-design-can-affect-the-wellbeing-and-productivity-of-employees.html "How a strategic office design can affect the wellbeing and productivity of employees") – let alone androids.

And the [expected market](https://www.financedigest.com/hydrolyzed-collagen-market-sales-is-expected-to-clock-high-growth-rate-by-forecast-2028.html "Hydrolyzed Collagen Market Sales Is Expected To Clock High Growth Rate By Forecast 2028") never materialised. Even as Pepper helped spread SoftBank’s name [around the world](https://www.financedigest.com/old-trafford-attracting-not-just-footballers-from-around-the-world-but-also-investors.html "Old Trafford attracting not just footballers from around the world, but also investors"), some customers were returning it when lease periods ended.

Two years ago SoftBank made a major attempt to reboot its robotics [business with the launch](https://www.financedigest.com/national-world-launches-new-ad-manager-platform-powered-by-danads-empowering-businesses-to-take-control-of-their-advertising.html "National World launches new ad manager platform, powered by DanAds, empowering businesses to take control of their advertising") of Whiz, an automated vacuum cleaner.

[Sales staff struggled to persuade customers](https://www.financedigest.com/yum-beats-sales-estimates-as-customers-flock-to-kfc-taco-bell-deals.html "Yum beats sales estimates as customers flock to KFC, Taco Bell deals") to pay $500 monthly for a product that could only clean open spaces and would break down, two other sources said.

Demand for Whiz has been boosted by the pandemic, with orders for 8,000 units in the April-June quarter, said Kenichi Yoshida, [chief business officer](https://www.financedigest.com/tips-for-choosing-the-right-chief-finance-officer-for-your-business.html "Tips for Choosing the Right Chief Finance Officer for Your Business") at SoftBank Robotics.

SoftBank has considered other robot products, including one that makes ramen, the two sources said. It sells a food [service robot](https://www.financedigest.com/is-it-time-for-financial-services-to-embrace-robots.html "Is it time for financial services to embrace robots?"), Servi, developed by California-based Bear Robotics, that can carry food to diners.

PURE INVESTING

The underperformance at SoftBank Robotics came to a head last year as the downturn forced Son to change strategy, [selling assets](https://www.financedigest.com/uks-cineworld-to-not-sell-assets-individually-denies-talks-with-amc.html "UK’s Cineworld to not sell assets individually, denies talks with AMC") to stabilise the group’s balance sheet and pushing portfolio companies to prioritise cash generation.

SoftBank Robotics embarked on a global restructuring, reported by Reuters last month, that includes [plans to cut half](https://www.financedigest.com/elon-musk-plans-to-cut-half-of-twitter-jobs-bloomberg-news.html "Elon Musk plans to cut half of Twitter jobs – Bloomberg News") of its Paris-based workforce.

The [business is nearing](https://www.financedigest.com/another-lockdown-is-the-top-concern-of-nearly-half-of-uks-small-businesses.html "Another Lockdown is the Top Concern of nearly Half of UK’s Small Businesses") profitability and listing is a possibility, Yoshida said.

The conglomerate has been shifting to pure investing through its Vision Fund and has sold down [majority stakes](https://www.financedigest.com/deutsche-telekom-reaches-majority-stake-in-t-mobile-u-s-ceo.html "Deutsche Telekom reaches majority stake in T-Mobile U.S. – CEO") in firms like Boston Dynamics. It [continues to take smaller stakes in robotics related businesses](https://www.financedigest.com/crafting-a-business-continuity-cybersecurity-plan.html "Crafting a Business Continuity Cybersecurity Plan").

SoftBank has struck [sales deals with partners](https://www.financedigest.com/aragon-partners-with-leading-digital-asset-exchange-shapeshift-ahead-of-highly-anticipated-token-sale.html "Aragon Partners with Leading Digital Asset Exchange ShapeShift Ahead of Highly Anticipated Token Sale") such as Iris Ohyama in Japan and RobotLAB in the U.S. There is a niche market for [selling Pepper to corporate](https://www.financedigest.com/bank-of-england-sets-out-plans-to-sell-23-billion-corporate-bond-stockpile.html "Bank of England sets out plans to sell  billion corporate bond stockpile") clients and in education, Elad Inbar, CEO of RobotLAB, said in an interview.

Our job in this ecosystem is to show that there is [market demand,”](https://www.financedigest.com/automotive-catalytic-converter-market-trends-growth-future-demand-analysis-and-forecast-by-2028.html "Automotive Catalytic Converter Market Trends, Growth, Future Demand, Analysis and Forecast by 2028") he said.

($1 = 109.7900 yen)

(Reporting by Sam Nussey. Editing by Gerry Doyle)


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