James Delahunty
9 Oct 2013 17:53
Panasonic will reportedly get out of the plasma TV panel production business by the end of March next year, according to a report.
Sources familiar with Panasonic's plans told the Reuters news agency that the company seeks to end its production of plasma TV panels by the end of its financial year, which ends March 2014.
The move is no surprise given that Panasonic's losses in its TV business have contributed to monstrous losses in recent years. A strong yen has also given it a major disadvantage over flat panel television rivals, such as South Korea's Samsung and its domestic rival LG Electronics.
On top of that, plasma televisions have declined in a market dominated by LCD, which has witnessed considerable improvements and innovation over recent year. According to DisplaySearch, only 6 percent of TV shipments in 2012 were plasma, compared to 87 percent for LCD.
According to Reuters sources, Panasonic will book an impairment loss of more than 40 billion yen with the closure of its plasma factory in Western Japan.