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Panasonic exits plasma TVs
Panasonic confirms plasma TV exit by December 2013


By Rasmus Larsen (@flatpanels)
31 Oct 2013

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Rumors have swirled about Panasonicís exit from the plasma TV industry, and the company has now confirmed the sad news. Panasonic will stop plasma TV production in December 2013, and end all plasma business activities by the end of March 2014.

Panasonic confirms plasma TV exit

Panasonic has lost money on its plasma TV operations for years, even though their plasma TVs have received much praise in reviews, and many users considered it the superior TV technology. But the costs of producing plasma panels have been too high to make it a profitable business in recent years. Panasonic has confirmed the exit in what seems like a repetition of Pioneerís famous plasma TV exit.

Panasonic has confirmed what the rumors said. They have already shut down production at two of its plasma TV factories and the last factory will stop producing plasma panels in December 2013. All plasma TV business operations, consumer and commercial, will be shut down by the end of March 2014, the end of Panasonicís fiscal year.

Panasonicís full statement included below.

Osaka, Japan Ė Panasonic Corporation today announced that in order to create a business structure that can respond to changes in the business environment and to accelerate the growth strategy of the company, the company will end the production of plasma display panels (PDP) in December 2013, and stop business operations at the Amagasaki P3 Factory (production currently stopped), the Amagasaki P5 Factory (production currently suspended), and the Amagasaki P4 Factory, which is currently operating, by the end of March 2014.

In the display panel business, Panasonic has been promoting the development of non-TV applications and carried out various restructuring measures, such as reduction of fixed costs, for both PDP and LCD panels. Through further fundamental business restructuring, the company is aiming to optimize the business and focus its management resources.

Since 2000, Panasonic has promoted its PDP business and led the global flat panel display market with its strategy of utilizing PDP for large displays and LCD for small- and medium-sized displays.

However, with the rapid development of large-screen LCDs, and facing the severe price competition in the global market brought on by the Lehman Shock in September 2008, the company consolidated production in the Amagasaki P4 Factory, made a shift towards commercial applications and worked to improve the earnings of the business.

Until now, due to the superiority of the picture, Panasonicís PDPs have received high appraisal and there has been firm demand from customers worldwide. However, due to rapid, drastic changes in the business environment and a declining demand for PDP in the flat panel display market, it was judged that continuing the business would be difficult and a decision was made to stop production.

The company will end sales of plasma TVs for consumer use and PDP related products for commercial use, such as Interactive Plasma Displays, with the products for FY 2014 (ending March 31, 2014). However, by selecting display panels that are most suitable for each product for both consumer and commercial use, Panasonic will work to develop and provide appealing products which meet the demands of customers, and will aim towards new development of its visual and display businesses.




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