Last week we told you of Sony’s move to buyout Ericsson’s share of the mobile partnership the two companies had enjoyed for a decade. Now we have news that Sony and Panasonic are cutting LCD TV panel production.
According to Reuters Sony is planning to pull out of its joint venture with Samsung for producing its LCD panels for TVs. This will mean Sony will then outsource production for the panels to other component suppliers. The company is struggling with its loss making TV business, and it is thought wants to focus more on mobile technology.
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Sources are claiming that Sony wants out of the agreement with Samsung as quickly as possible, but hasn’t reached agreement about the move. The breakup has been rumored for a few months now, and Sony is looking at a loss for its TV arm for eight years in a row.
They have already sold off some factories in Mexico, Slovakia, and Spain that made TVs in recent years, and already outsources over half of its production to other companies. Meanwhile What Hi-Fi is reporting that Panasonic are set to cease production of TV panels at two of its plants, with one making LCD and one plasma.
The company is looking to restructure its loss making TV arm, and comes as the company slashes it forecast for TV sales for the current fiscal year. The sector is suffering from global oversupply that is making it harder for companies to return a profit as prices fall sharply. The situation could be compounded in the coming years with Apple looking to dip is toe in the market with its own branded TVs.