Pioneer to stop production of Plasma display panels
In the hopes of recovering from its losing trend, Pioneer Corp. of Japan have announced they will stop producing plasma display panels (PDPs) and will resort to buying its requirements for the product from rival company, Panasonic.
In an issued official statement, Pioneer said that the company has judged that maintaining the cost competitiveness of PDPs against projected sales volumes will impede the company’s growth. What was once a strong contender in the electronics industry, Pioneer fell behind rival companies such as Panasonic’s Matsuhista and South Korea’s Samsung Electronics Co., as well as LG Electronics.
Although the pulling out of plasma TV panel production will cause Pioneer a one time expense amounting to $184.5 million, Pioneer is confident that it will return to profit at the end of the fiscal year 2010.
Pioneer’s decision to outsource its plasma display panel requirements is the second time that Pioneer has partnered with a rival company. Last year it teamed up with Sharp Corp. by buying its liquid crystal displays which are used for flat TVs. This partnership has brought positive effects for Pioneer. In fact, Pioneer is set to launch a new line up of flat TVs. Pioneer and Sharp will also work on Blu-ray disc recorders and players.
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Pioneer’s decision to outsource its plasma display panel requirements is the second time that Pioneer has partnered with a rival company. Last year it teamed up with Sharp Corp. by buying its liquid crystal displays which are used for flat TVs. This partnership has brought positive effects for Pioneer. In fact, Pioneer is set to launch a new line up of flat TVs. Pioneer and Sharp will also work on Blu-ray disc recorders and players.
on July 2, 2008 at 06:16 AM - LINK