Panasonic has decided to switch off television production. Cutting back the TV business is part of the Japanese group’s plan to transform itself into a more streamlined tech company. But the changes are happening too slowly.
Panasonic will move most of its TV production to Chinese manufacturer TCL, which will produce the budget models. Two of its remaining four plants will be shut down, reducing production costs. The move makes sense given low margins. Panasonic has lagged behind regional TV-making peers for a long time. On an annual basis, its TV business posted losses in the 2018 and 2019 financial years.
Problems were set in motion two decades earlier. Panasonic made a costly bet on plasma displays, screens that contain tiny pockets of gas that react to electricity, in 2000. The bet failed. Plasma has little competitive advantage over liquid crystal displays, which are low cost and easy to make.