Panasonic to exit plasma TV panel business by end-March 2014

[Vishal]

I have seen these sort of reports quoted even in the past by multiple sources and they remained just as plain rumors and nothing happened. I only hope it remains the same this time as well. In 2012, few said that Panasonic is closing the plasma business in 2013, but we saw the revival of plasma this year with the kuro killer models and of course Samsung has caught Panasonic just like that.

Let me give my insight into how the process is prolly run from a business point of view (with little humor)

Shutdown is not an overnight decision hence "nothing" seems to have happened. This is what is happening inside Panny.

a. The company's sales slide qtr on qtr and year/year and hence its fixed costs increase. Also others are able to offer a cheaper/better model hence market share also decreases. Doubly whammy and at some point they declare a loss. (T - 3 years)

b. Share price tanks and angry shareholders call "Panny Chairman" San and hammer him. He asks for patience and promises that next year Panny Plasma will bounce back.

c. Meanwhile, Panny San calls Plasma San and hammers him. Orders a business review and his plan to get profitable. (T - 2 years)

d. Decline continues, shareholders get MAD. Panny San fires Plasma San and gives his replacement 2 years to make profit or get out. Also, Panny San quietly approaches a few bankers to reach out to White Knights (other firms, PE's who could buy Plasma div out). Panny makes a statement saying "We are firmly behind Plasma, blah blah. This is when the rumors start. (T - 1)

It would take anywhere from 1 - 4 years to find a buyer. My sense is that we are at a stage when Panny is desperately looking for a savior as it bleeds. The end might come this year or next, but they do look terminal.

 

[karthi1000]

is there any technical limitation for 4k plasma panel ? since the furture of tv is 4k , panny is moving towards 4k region that may be a reason!?

 

[just4kix]

is there any technical limitation for 4k plasma panel ? since the furture of tv is 4k , panny is moving towards 4k region that may be a reason!?

I do not think that there will be any technical limitation. But I don't think a 4K plasma panel has been made. So someone will have to do the R&D to make such a panel and all plasma R&D has been stopped. The trend is towards OLED development. So 4K plasma is a non-starter.

 

[adder]

Panasonic TV business which includes both lcd and plasma is under loss.So for them to be competitive in the future,they have to close down loss making plasma division.Since the Koreans are already rolling out OLED and Japanese need an answer ,so the resources will be used for OLED and 4k.

 

[rpm19050]

I do not think that there will be any technical limitation. But I don't think a 4K plasma panel has been made. So someone will have to do the R&D to make such a panel and all plasma R&D has been stopped. The trend is towards OLED development. So 4K plasma is a non-starter.

I think the power consumption would shoot up? that would mean need for thicker conductors in ever-shrinking pcbs.

i think that one of the key factors for bad reliability these days is the race for form factor. How many of us really need a super slim flat panel tv? it's not like we can utilise that one freed up spare inch in some way?

 

[Nishanth]

All these loss figures for Panasonic are from the last financial year. From this financial year they have started to report profits from their display division, the Plasma TV is not doing all that well but losses from the Plasma TV division is offset by their profitable small LCD panel division which makes displays for portable devices. So their display division is not under any financial pressure to stop their Plasma TV business as their overall display division has become profitable.

Edit : I stand corrected, the display business of Panasonic is still making losses.

The flat panel business has become cyclic now, so if a company is making losses this year then you cannot say that they will be making losses next year too. LG's display division reported losses last year but this year they turned profitable and are no 1 in the LCD display market. Samsung's LCD TV business also faced losses but they turned around the business and are now profitable.

But their plasma division is losing money (actual numbers published). Panasonic can't keep operating that department at a loss indefinitely.

BBC News - Panasonic 'to quit' loss-making plasma TV business

The BBC first incorrectly reported that the plasma division made a loss of 754bn yen in the last financial year but then they corrected the news item with the fact that those figures were for losses that Panasonic made as a whole.

Also, money does not lie - Yen300 Bn of losses.. Wow !! i.e. the more they sell, the more they lose. No wonder customers are struggling to get replacements or refunds, Brand Shops are struggling with stocks, company is struggling with market budgets... And to top that, there is ONLY ONE factory that makes Plasma .. amazing!!

The 300 billion Yen loss figure is the accumulated losses for Panasonic display division from the last two financial years and this is not just the loss from their Plasma division. Their LCD TV business also had heavy losses in that period and contributed to the 300 billion Yen figure.

is there any technical limitation for 4k plasma panel ? since the furture of tv is 4k , panny is moving towards 4k region that may be a reason!?

Panasonic has already developed 4K Plasma panels and has launched a 152 Inch for the professional market. It is still listed in Panasonic India's professional display range section, they also launched a 145-inch 8K Plasma display

 

[Dirac]

Even when all the top review houses and the AV forums shout at the top of their voice that Panasonic plasmas are the best and keep giving reference status to them year after year, still panasonic plasma business is in losses?
This only shows that world is definetly moving away from plasmas.
I feel it is because of the bad propaganda that the plasmas receive.
They are somehow being tagged as "not cool".

When I talk about my plasma , many people immediately ask all kinds of questions...
" But plasma is old technology right?",
" But plasma consumes more power right?
" But plasmas are heavy right?"

etc.. etc...

I patiently defend my ST50 giving an account of its virtues...
But sometimes I really want to say "Go..F*** yourself".

 

[BLASTO]

Even when all the top review houses and the AV forums shout at the top of their voice that Panasonic plasmas are the best and keep giving reference status to them year after year, still panasonic plasma business is in losses?
This only shows that world is definetly moving away from plasmas.
I feel it is because of the bad propaganda that the plasmas receive.
They are somehow being tagged as "not cool".

When I talk about my plasma , many people immediately ask all kinds of questions...
" But plasma is old technology right?",
" But plasma consumes more power right?
" But plasmas are heavy right?"

etc.. etc...

I patiently defend my ST50 giving an account of its virtues...
But sometimes I really want to say "Go..F*** yourself".

All you have to do I switch on the TV and show them the picture.

 

[Vishal]

I patiently defend my ST50 giving an account of its virtues...
But sometimes I really want to say "Go..F*** yourself".

Blasto, Dirac, .. :
There are 2 separate issues here: plasma as a tv vs Panasonic company (or their plasma division). People are unnecessarily becoming emotional and defensive about their plasma TV's. But this is not about your plasma TV's, it is about the future of Panny's plasma division to survive.

Panny has produced great Plasma TV's .. the ST and VT series are amazing, world class for movies/blacks etc. I am a big fan too. However, there is no escaping the cold, hard facts that as a business, it is facing massive losses. And the losses will continue to increase.

Some one quoted that Panny's numbers for this year are profitable. Can the gent please quote their source and the original article.

There are atleast 20 different news sources today that have posted their own story on Panny shutdown including Reuters, Bloomberg, BBC, QTN, Jap Media etc etc.

 

[Dirac]

http://www.whathifi.com/news/panasonic-denies-reports-it-will-end-plasma-production-in-2014

 

[Nishanth]

Blasto, Dirac, .. :


Some one quoted that Panny's numbers for this year are profitable. Can the gent please quote their source and the original article.

Just checked their figures for the last quarter. You are right, their display division is still making losses. Only the company as a whole has turned profitable. The figures show that the the losses have decreased for the display business but the sales number for TVs has continued to fall.

 

[Vishal]

Panasonic denies reports it will end plasma production in 2014 | whathifi.com

1.

Ahh .. the magic words " Nothing has been decided at this stage.." appeared twice. In trade talk this means that they are searching hard for a buyer or deciding the details of a shutdown. Not once has the word "deny/denial .. " quoted in their statement.

In my earlier post, I had suggested the "nothing decided" word-play before reading the post. Please make your own judgement about what will happen in 6-12 months.

2. The article does not mention that Panny numbers are better, they say that the "models" are better.

Still looking for any financials on their 2013-14 numbers.

 

[Vishal]

Just checked their figures for the last quarter. You are right, their display division is still making losses. Only the company as a whole has turned profitable. The figures show that the the losses have decreased for the display business but the sales number for TVs has continued to fall.

Nishanth: Thank you for your excellent access to Panny's financials. It's hard work to obtain provisional/halfyear numbers so appreciate your research

However, no surprise that the display unit is still bleeding. There is no way a c. 600 bn Yen loss can be reversed anytime soon, if at all.
There in lies the problem and unfortunately the final solution.

 

[BLASTO]

Blasto, Dirac, .. :

Wonder why you mention my name..

I least bother when Panasonic closes shop inspite of owning a Panasonic plasma. With the kind of attitude and pricing in India at least, they deserve that.
In fact, This year, I like the Samsung plasmas more.
They produced some good plasmas. That's all. Their customer angle was always questionable.

 

[hifijay]

Also, the stupid energy saving requirement specification government mandated kills this technology. It un-necessarily forces the display to have ABL (Auto Brightness Limiter). It makes the display dull in showroom brightness. Stupid government babu kills the tech.

Even when all the top review houses and the AV forums shout at the top of their voice that Panasonic plasmas are the best and keep giving reference status to them year after year, still panasonic plasma business is in losses?
This only shows that world is definetly moving away from plasmas.
I feel it is because of the bad propaganda that the plasmas receive.
They are somehow being tagged as "not cool".

When I talk about my plasma , many people immediately ask all kinds of questions...
" But plasma is old technology right?",
" But plasma consumes more power right?
" But plasmas are heavy right?"

etc.. etc...

I patiently defend my ST50 giving an account of its virtues...
But sometimes I really want to say "Go..F*** yourself".

 

[Vishal]

Wonder why you mention my name..

I least bother when Panasonic closes shop inspite of owning a Panasonic plasma. With the kind of attitude and pricing in India at least, they deserve that.
In fact, This year, I like the Samsung plasmas more.
They produced some good plasmas. That's all. Their customer angle was always questionable.

haha .. I was deferentially addressing everyone who had posted so as to not reply to each one .

What if, just what if.. you could merge Sony's marketing and Panny's technology ??

Sonasonic now offers: Trinitron LED's and Viera Plasmas .....

What say people??

 

[Dirac]

haha .. I was deferentially addressing everyone who had posted so as to not reply to each one .

What if, just what if.. you could merge Sony's marketing and Panny's technology ??

Sonasonic now offers: Trinitron LED's and Viera Plasmas .....

What say people??

I'd love the best japanese samurais coming together.

 

[adder]

Panasonic and Sony are already working on a joint venture on OLED tv.

 

[Dushie]

Today's newspaper most of the tv companies had their Diwali offer and advertisements. Panasonic also had their but filled only with LED's not a word or offer on plasma models or details of any plasma models. I feel this is a clear cut indication where their business is heading in India. They may exit plasma locally if not globally as their is hardly any stock, anywhere and not many models which they are selling now.

 

[sunilkm]

Yes this is very much true. I was also looking all the models listed in the panasonic advertisement. All were LED. Not even mentioned S60. As such there are no offers for LED. I think Samsung and LG understand the festive mood of indian customers. It is pretty sure that panasonic is not interested in selling plasmas in india now.