Panasonic pulling back from Consumer Electronics to focus on Healthcare and Autos

[hodg100]

Future is still uncertain

Panasonic has said it will spend 250 billion yen ($2.7 billion) over the next two years on a new round of restructuring measures to turnaround its fortunes. The company didn't reveal whether this would mean any job cuts but 'restructuring' is often a euphemism for that.

Speaking at a news conference in Tokyo, today, President Kazuhiro Tsuga said he wants to expand the firm's automotive and housing development businesses as it pulls back from consumer electronics.

Despite producing some excellent TVs, Panasonic's TV division is suffering along with most of the rest and is under pressure form backers and banks to offload its weaker businesses and trim its payroll.

"Panasonic has talked about selling assets, but without cutting workers too, it will come across as a restructuring plan that lacks teeth," said Makoto Kikuchi, the CEO of Myojo Asset Management in Tokyo, speaking toReuters. "Panasonic does not have the sort of corporate culture which you would expect to see serious layoffs."

So, there's no direct mention of what they're planning with their TV unit but there will be changes.

Source: Reuters

 

[Adlermann]

Overhere philips is doing the same thing. Completely pulling out of consumer electronics (no profit to be made) and completely focussing on healthcare and lights.

 

[MrOpinionated]

IER Magazine stated that Panasonic will be halting production of their Plasma panels soon OMG!!!

 

[LicensedTaximan]

Although I have a Panny VT30, and think it's great. I believe give it between two to three years and plasma will, unfortunately and effectively, be finished.

My (hopeful) opinion is that OLED will be the new plasma. If it promises all these wonderful black levels that we're told about then with any luck we will have Panasonic "VT", "ZT" and Pioneer "Kuro" type images at lower prices. My reasoning for this.....That this technology would be manufactured in global numbers by different manufacturers and prices will drop dramatically, and hopefully far more quickly than plasma did because of the global demand and therefore production after the initial "new technology" startup. Well that's my pennies worth...I hope.

 

[mikelj]

Presumebly, whether they pull out of the TV business completely will depend on whether they believe that the potential profits from OLED will warrant the investment (simply as the they are not profitable with the current display technology).

 

[LicensedTaximan]

Presumebly, whether they pull out of the TV business completely will depend on whether they believe that the potential profits from OLED will warrant the investment (simply as they are not profitable with the current display technology).

I suppose time will tell, we live in hope.

 

[Phox]

It'll be a shame if Panasonic pull out of TV manufacturing. I love my plasma.

 

[MrOpinionated]

They probably won't pull out of LED as they are already buying all their panels from LG so they don't need to manufacture them, and rightly or wrongly LED TV's are what generally consumers are demanding.

 

[vaktmestern]

Not looking good for Panasonic plasma future. The Koreans own the tv marked so its hard to stay competetive vs the 2giants ..

 

[mikelj]

Not looking good for Panasonic plasma future. The Koreans own the tv marked so its hard to stay competetive vs the 2giants ..

Well, if you look at the manufacturing issues LG and Samsung have with OLED, then if Panasonic's claims regarding their OLED printing process are true, there may be a very good opportunity for Panasonic/Sony to dominate OLED market.

 

[stucarblne]

Well, if you look at the manufacturing issues LG and Samsung have with OLED, then if Panasonic's claims regarding their OLED printing process are true, there may be a very good opportunity for Panasonic/Sony to dominate OLED market.

No bad thing if they do. The faster the technology is brought to the masses, the quicker the improved processing required for (U-HD) and ageing algorithms etc etc. I think Sony working with Panasonic on OLED is a great thing as one will drive the other with things like quality control (hopefully).

The quicker OLED becomes more common - the better it is for everyone (consumers/calibrators/advertisers and retailers alike)

After plasma technology has stopped being manufactured.