Could this be an indication of LCD tv’s dominance? Despite plasma television superior picture quality more and more consumers are choosing LCD over plasma. As a result it is just not cost effective for many electronics manufacturers to continue making plasma tvs. Japan’s Pioneer Corp said Friday it will stop making plasma panels amid intense competition and will instead outsource the production of plasma panels for its television sets.
The Japanese maker of car navigation systems and audio equipment said it will start buying plasma panels from Matsushita Electric Industrial Co Ltd , the world’s largest consumer electronics maker, but did not provide details on the timing and volume of panels it will now outsource.
‘The move was regrettable but we had no choice but to do so for the sake of the company’s future,’ Pioneer president Tamihiko Sudo said at a press conference.
‘The top priority for us now is to make the operation suitable to the scale of the business,’ he said.
‘Now, how well we can apply our technological advantage to the back-end area of the production process holds the key to success, and we believe we have sufficient technology, capabilities and potential’ to do just that, he said.
The decision to exit plasma panel production came after Pioneer slashed its sales projection for plasma TV sets to 480,000 units for the current fiscal year ending this month from the initial target of 720,000 sets. (link)