Mar 07 2008
Pioneer Announces Restructuring Plans, Exit from Plasma Display Production
Tokyo, Japan — Mar 07, `08 — Consumer electronics maker Pioneer Corp said it would fall into the red for the fourth straight year on costs to scrap production of plasma displays as it rethinks its strategy in the cut-throat flat TV market.
Pioneer is expected to now turn to Panasonic brand maker Matsushita Electric to supply it with panels for its plasma TVs, thereby allowing it to focus on design and marketing and save on production costs.
Pioneer is the world’s fifth-biggest plasma TV maker, but it has been struggling to compete with larger rivals such as plasma industry leader Matsushita and LG Electronics, which can leverage economies of scale.
“This move will allow us to transform our business model for displays from vertically integrated, capital-intensive operations to a leaner business model geared to making value-added product proposals,” Pioneer said in a news release. More at Pioneer (in pdf).
