Sony Exits Plasma TV Market
August 7, 2006 3:28 PM
comment(s) - last by
Sony gives up on plasma
announced plans to exit the plasma TV market
. The company has been facing increasing pressure in the market and it doesn't own any plasma display panel (PDP) plants to support its business. Sales for Sony PDPs for fiscal year 2005 were down 67% compared to the year before and the company has failed to disclose its targets for the current fiscal year. Coupled with the enormous amount of backing Sony has committed to LCD, the move to exit the plasma market was almost inevitable.
With PDPs now out of the picture, Sony can now focus its efforts entirely on LCD TV production where it has seen much success. Back in February,
Sony was number one in global sales for LCD TVs for Q4 2005
. To keep up the momentum,
Sony and Samsung invested $2 billion USD
into the expansion of their jointly owned 7G LCD facility. The investment increased monthly production by 50,000 units per month. Sony is seeing large profit margins for LCD TV panels of 40" and above so the company is focusing on that sector of the market and is preparing for 8G.
In a bid to secure more panels with which to win the large-size TV battle, Sony has signed a contract for the construction of an eighth-generation (8G) TFT-LCD production line through S-LCD, a joint venture with Samsung in July. The new plant is targeted to start production in fall 2007, with a monthly capacity of 50,000 glass substrates.
Earlier this year, Sony had to issue a
recall for over 400,000
of its Bravia flat-screen and Grand Wega rear-projection LCD televisions. It was found that affected models wouldn't turn off after prolonged usage.
This article is over a month old, voting and posting comments is disabled
8/7/2006 5:34:39 PM
We'll see if SED ever shows up; I used to be a fan of it myself (and still am in a sense), but I think there is a very real concern that for large panel sizes it simply won't be able to compete on ost with LCD, and the problem only gets worse the more it falls behind schedule...
8/7/2006 9:24:34 PM
> "I think there is a very real concern that for large panel sizes it simply won't be able to compete on ost with LCD..."
From a process perspective, SED should be considerably cheaper than LCD. It simply needs a mature technology, and economies of scale. And, of course, its image quality is superior to LCD and plasma both. It'll arrive eventually...but I hesitate to predict exactly when.
"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch
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