As the market for HDTVs become saturated, the TV industry is experiencing extreme upheaval: new gimmicks like 3D and Smart TVs haven't been enough to revive stagnating sales, and major players like Sony and Panasonic are drastically restructuring.
TV business stumbles: Sony and Panasonic divisions struggle to stay afloat
Panasonic reports $10.2 billion loss for 2012, plasma TV sales fall more than 40 percent
Panasonic released its annual financial results today, and like so many of the old guard in Japan’s technology sector, things aren’t pretty. The company announced that its net loss for fiscal 2012 (the year ending March 31st) amounted to ¥812.8 billion (about $10.2 billion)— an increase of more than ¥30 billion (about $375 million) from its revised forecast in February. Like every other Japanese hardware manufacturer this year, Panasonic pointed to the effects of the 3/11 earthquake,...
Sharp posts record $4.7 billion loss, expects to sell even fewer TVs in 2012
Sharp is announcing a 376 billion-yen loss (about $4.7 billion) for fiscal 2011, well above its 290 billion-yen estimate from February, citing low sales in its primary businesses, reductions in asset valuation, restructuring expenses, and deferred income tax charges. While the company is doubtlessly in a hurry to move on, it is expecting losses to continue in 2012, to the much smaller tune of 3 billion yen (about $37 million). In addition, Sharp is forecasting TV production to decrease by...
LG Display suffers third straight quarterly loss
LG Display has announced that for the third straight quarter it has suffered a net loss due largely to low demand for flat screen TV panels. Over the first three months of 2012 the company saw a net loss of 129 billion won ($113 million), which represents a further drop compared to last year when it posted a 115.4 billion won ($101 million) net loss. It also experienced an operating loss of 178.2 billion won ($156 million) over the same period, though revenue did rise 15.2 percent compared to...
Tablets the second most popular way to watch TV, says Viacom study
The second most popular way to watch TV is now on a tablet, with iPads leading the way, according to a study by US media giant Viacom. The survey questioned 2,500 on where and how they watched full-length TV shows, and found that 15 percent of people's total viewing now occurs on tablets. The change has largely been at the expense of computer viewers, as Viacom's study says that the most popular genres on tablets, comedy and music, most closely align to those who'd normally watch on their PC...
Sony will reduce TV portfolio by 40 percent in 2012, look to commercialize OLED and Crystal LED TVs
How do you fix a problem like Sony's chronically ailing TV business? New company CEO Kaz Hirai reckons the answer lies in streamlining the number of products offered, by a full 40 percent during the fiscal 2012, and focusing on the development and introduction of new high-end displays such as OLED and Crystal LED. We loved our first sighting of Sony's Crystal LED prototype at CES in January this year, so Kaz's vision definitely strikes the right note with us. Additionally, the company's...
Foxconn to take largest stake in Sharp's Osaka LCD plant, says Nikkei
Last month, Sharp sold 46.5 percent of its LCD production business in Sakai, Osaka to Foxconn, retaining the same share itself with the remaining 7 percent being owned by Sony. Now, Nikkei is reporting that the troubled TV manufacturer will sell a further 7 percent of its stake to Dai Nippon Printing Co. and Toppan Printing Co, leaving Foxconn as the largest shareholder in Japan's most advanced LCD facility. Sony has the right to sell its share to Sharp any time, however, which would redress...
Sony doubles estimate for 2011 loss to record $6.4 billion
Sony has just announced that it'll report a record $6.4 billion loss for the 2011 financial year. It's a bad number however you look at it, though more than half of the overall figure is made up of a tax charge (about $3.6b) that Sony has had to take in the US. That charge, together with Sony's already expected $2.9 billion loss from operations, has resulted in today's grisly revision to the company's estimated annual accounts.
Is Sony rolling out its promised 'unilateral' pricing strategy?
Last month, we reported that Sony was planning to roll out a "unilateral" pricing strategy in the US on April 1st. This would essentially put an absolute minimum on what its retail partners could charge for Sony products, and its starting to look like this new strategy is rolling out as promised. Some posters on AVS Forum noticed that the price of Sony's 65-inch Bravia X929 HDTV jumped over $1000 overnight on Amazon.com, and a look at price-tracking site Camelcamelcamel.com confirms this jump....
Sony entering commercial OLED TV partnership with AU Optronics?
Sony has been quiet on the OLED TV front since withdrawing its 11-inch XEL-1 from the market a couple of years ago, and while Samsung and LG showed off 55-inch OLED sets at CES this year Sony only brought its Crystal LED prototype. However, the company has always said that it was continuing development of OLED technology, and if reports coming out of Korea are to be believed its re-entry into the market may not be far off. ET News cites sources with information that Sony has sent engineers to...
Sony abandons further investment in Sharp LCD collaboration
Sony has announced that it will make no further investment in Sharp Display Products Corporation (SDP), its joint LCD production venture with Sharp, following yesterday's news that Foxconn would be taking a 46.5 percent stake. The two companies have further amended their agreement to give Sony the right to sell its seven percent stake in SDP to Sharp in the event of a third party (such as Foxconn) entering in the partnership. A decision on what Sony will do with its stake is expected by...
Sharp enters manufacturing partnership with Foxconn to ensure business sustainability
Sharp has entered into a manufacturing agreement with Foxconn that will see the Taiwan-based company take a stake of around 10 percent in the Japanese manufacturer, making it the largest third-party shareholder ahead of Nippon Life. Foxconn has invested about ¥67 billion ($809.1 million dollars) of capital into Sharp in return for around 121.65 million new shares. Recently appointed CEO Takashi Okuda said "Until now we have handled all of our R&D and manufacturing, but going forward we will...
Sony reorganizes into 'One Sony', prioritizes digital imaging, gaming, and mobile
Sony is unveiling a new business structure today, dubbed "One Sony," which it hopes will speed up and streamline its decision making process. Under the new plan, the separate professional and consumer product and service groups will disappear, which is probably what gave rise to the aspirational name. The top-tier reorganization is effective beginning April 1st, and sees the company place digital imaging, gaming, and mobile devices as the three cornerstones of its electronics business.
In...
Samsung LCD business spin off gains shareholder approval
Samsung is moving full steam ahead with its plans to spin off its unprofitable LCD-making division into a separate, fully-owned subsidiary. The company's shareholder have approved the move, which means that on April 1st we should see a new company called "Samsung Display Co." That's not to be confused with Samsung Mobile Display Co., which manufactures OLED displays. Nor is it to be confused with S-LCD Co., the subsidiary borne of a joint-venture with Sony, which also makes LCD panels. Sony...
Sharp installs Takashi Okuda as new president after forecasting record losses
Nikkei is reporting that Mikio Katayama will step down as Sharp president, following a projected record loss of $3.5 billion for the 2011 fiscal year. The new president is set to be Takashi Okuda, 58, who previously served as a managing executive and handled global operations within the firm. Katayama will become the company's chairman. Okuda said "It is my aim to unite the company and revive our fortunes by changing our business model. We have a lot of unique technology, and the ability to...
Samsung spinning off its LCD business to focus on OLED
We knew that Samsung was thinking about spinning off its unprofitable LCD business, and while its disclosure on February 14th stated the company would make a final decision within three months, a new filing shows Samsung is going ahead with its plan. Bloomberg reports the new subsidiary is tentatively named Samsung Display Co., and could be merged with Samsung Mobile Display Co. and the company's recently-acquired 100 percent stake in S-LCD, allowing the company to shift some of its...
Samsung LCD flat panel division making a loss, may be spun off in favor of OLED
The trouble that Sony and Panasonic find themselves in — being unable to break even from the sale of their traditionally popular TV sets — stems mostly from overwhelming price competition on the part of Korean giants Samsung and LG. It may surprise you to find, however, that Samsung isn't making any money out of the business either. Reuters today reports that the future of Samsung's loss-making LCD flat panel manufacturing arm is being considered. Faced with even cheaper competitors...
Sony downgraded by S&P due to loss-making TV division and 'severe' competition
Kaz Hirai's biggest challenge in his upcoming promotion to CEO of Sony will undoubtedly be to revitalize the company's once-glorious TV division. Having suffered a debt rating downgrade by Moody's three weeks ago, Sony is today getting another negative outlook, this time from Standard and Poor's. The creditworthiness assessors over at S&P believe that Sony's long-term earnings will continue to be hampered by the significant losses generated by its TV-producing arm and have lowered its...
Panasonic forecasts record $10.24B annual loss for FY2011, $2.59B from Q3
Panasonic is the latest Japanese TV manufacturer to feel the squeeze, and how — it's just updated its annual forecast to predict a loss of ¥780 billion ($10.24 billion), by far the largest in the company's history and coming close to the record ¥787.34 billion ($10.33 billion) loss Hitachi posted in the fiscal year ended March 2009. Like most other Japanese companies, Panasonic is blaming the strong yen and Thai flooding, although it also wrote off ¥250 billion ($3.28 billion) for the...
Sony posts $2 billion net loss for Q3 FY2011 results, forecasts $2.9 billion loss for full year
Sony has just posted its results for the third quarter of its 2011 fiscal year and as expected, the news is not great. Sony posted an operating loss of $1.2 billion and net loss of $2 billion on revenue of $23.37 billion. Sony placed part of the blame on "the impact of the floods in Thailand, deterioration in market conditions in developed countries, and unfavorable foreign exchange rates," but also pointed out that its decision to sell its stake in a joint LCD venture to Samsung and some...
LG posts improved Q4 net loss thanks to profit from handset and TV divisions
LG Electronics reported its fourth-quarter 2011 results today. The South Korean company posted a net loss of 111.6 billion won ($97.73 million) during its quarter ended December 31, compared to a 245.7 billion won loss in the same period last year, a clear improvement boosted by its TV and handset divisions. Fourth-quarter sales dropped by 6 percent, but the company posted an operating profit of 23 billion won ($20 billion).
LG's handset division reached 9.9 billion won in operating profit,...
Sony promotes Kazuo Hirai to President and CEO effective April 1st, Stringer to be Chairman of the Board
Sony has officially named Kazuo Hirai as President and CEO, replacing Howard Stringer in both roles. The move to the role of company president was reported last month, but Sony has now confirmed that Hirai will be taking on CEO responsibilities as well, effective from April. Stringer will become chairman of the board in June, remaining executive chairman until then.
Hirai, 51, is currently the president of Sony Computer Entertainment. He is largely credited with turning around Sony's video...
Sharp slashing LCD production by half at Osaka plant in response to sagging HDTV market
While Sharp may have high expectations for the large HDTV (60+ inches) segment, it would seem that the manufacturer is nonetheless feeling the effects of an overall stagnant market. Nikkei reports that Sharp will cut LCD production by half at a plant in Osaka, Japan in response to a downturn in TV demand. That's not to say the affected factory lines will sit idle during the break. Sharp is allegedly considering retooling its facilities to develop higher-resolution displays and improve power...
Hitachi to stop domestic television manufacture in October
After more than 50 years of business, Hitachi announced that it will move its LCD and plasma television production outside Japan this October, in a further sign that the strong yen and foreign competition are hitting the domestic technology industry hard — particularly TV manufacturers. A spokesman for the company said "We can't expect the domestic TV market to grow much, and price competition is getting more and more intense." The division's employees will transfer from Hitachi Consumer...
Sony and Panasonic take debt rating hit, television divisions largely to blame
Moody's Investors Service has downgraded the debt rating of both Sony and Panasonic, singling out continued losses from their television divisions as a reason for the change. Citing increased competition, declining device prices, and strong performance of the yen, Moody's lowered Sony's rating from A3 down to Baa1, while Panasonic moved from an A1 to an A2 — both with a negative outlook.
The companies have struggled with their TV businesses as of late, with Panasonic recently cutting...
Samsung buys Sony's stake in LCD joint venture for $939 million
Sony and Samsung have ended their LCD joint venture established in 2004. The split comes after rumors of the dissolution were first reported in October and follows Sony's November announcement of a $1.2 billion annual loss due to weak demand from its loss-leading television division coupled with a strong yen. Samsung will acquire all of Sony's 50 percent share for 1.08 trillion won (about $938.97 million) and convert the joint venture into a wholly-owned subsidiary. In addition to monetizing...
Strong TV sales for Samsung, Sharp as Sony struggles
It seems Americans are still buying plenty of TVs — TVs that don't carry the name "Sony," anyway. Samsung announced today that the company enjoyed record sales of 5.7 million units in the month of November aided in large part by a massive Thanksgiving holiday weekend that saw consumers besting last year's retail figures by $7.4 billion. That performance keeps Samsung on track to hit its 2011 sales goal of 45 million flat-screen TVs. Additionally, more shoppers are going bigger when it comes...
WSJ: Sony considering internet-based cable TV alternative (update)
Sony has approached "several big media companies" about streaming television channels directly over the internet to Sony consumer electronics devices, writes the Wall Street Journal. According to the publication's anonymous sources, the company's considering the launch of an IPTV service to compete with cable, possibly fulfilling CEO Sir Howard Stringer's promises last week that Sony would build "a different kind of TV set." The Journal reports that the service would stream to PlayStation...
Sony CEO says company is investing heavily in 'a different kind of TV set'
Sony's TV division hasn't made a profit in eight long, barren years, but the company's CEO, Howard Stringer, is now ready to reverse that trend. "We can't continue selling TV sets" in this manner, he tells the Wall Street Journal, "every TV set we make loses money." His solution is to offer a new and altogether different kind of TV set, although in typical CEO fashion, he refuses to elaborate on what that might involve. He simply offers the assurance that a great deal of R&D investment is...
Sony forecasts $1.2 billion loss for the year
As expected, Sony just announced dismal earnings for the quarter and projected year. The company expects to post a ¥90 billion ($1.2 billion) net loss for the financial year on the heels of an unexpected quarterly loss of ¥27 billion. It had expected ¥60 billion in net income for the year. Sony blames the strong yen and flooding in Thailand for its recent woes in addition to sluggish television sales in the US and Europe.
Sony cut its annual sales forecast for televisions by nine percent,...
Sony reshuffles TV division as market upheaval continues
Sony today announced that it's going to reorganize its ailing TV division into three groups, focused on LCD television, outsourcing, and next-generation products, respectively. The move comes one day after insistent rumors that Sony will disband its LCD manufacturing deal with Samsung, and just one day before Sony announces its quarterly earnings, which are expected to once again be bleak. The timing has fueled further whispers that a more dramatic move is in the works, especially in the wake...
Panasonic cuts flat-panel production due to huge losses
A frankly miserable second quarter has caused Panasonic to significantly scale back its flat-panel production, and instead begin sourcing components from other suppliers. Earlier rumors said that Panasonic would relocate its plasma screen facilities to Shanghai, but with a projected $5.4 billion in losses this year the company will cut production for all flat-panels by almost a half, closing both a plasma and an LCD factory in Japan. Panasonic has been regarded as one of the best...
Sony to end its LCD relationship with Samsung?
Following Sony's announcement back in August that it plans to restructure its TV division after eight years of losses, rumors are now surfacing that it might be looking to withdraw from S-LCD, its joint LCD manufacturing venture with Samsung. While there's no official word from the company, Reuters has reported two views of Sony's position drawn from industry sources. The first suggests that Sony may be looking to dissolve its share quickly, but is yet to agree terms or timing with...
Sony expects 'murky' holiday quarter, no reason for optimism
It hasn't been the best year for Sony, and it sounds like the holiday shopping season won't bring any cheer for the electronics giant either: CFO Masuro Kato told Reuters today the sales forecast for North America and Europe is "murky," and that the company doesn't "see any reasons for optimism." That's pretty rough, and it's made even worse by the falling value of the euro against the yen, which reduces Sony's overall profit margin on every product sold. Sony's also facing increased calls...
Sony wants to overhaul unprofitable TV division, but where will the answers come from?
After nearly eight protracted years of losses in the TV manufacturing business, Sony has decided that it's time for a change. The company has this week announced plans to "review everything" about the way it makes and sells televisions, with the overarching goal being to increase profit margins rather than unit sales. That would seem to openly concede the price-sensitive mass market to the likes of Samsung and LG, but also points to the inadequacy of Sony's recent efforts to resuscitate its...
