Pioneer to end TV production completely and hive off DVD Business

[admin_exported]

From the Dow Jones News, USA=======================

02/06 12:12P (DJ) DJ Pioneer To End TV Production, Spin Off DVD
Development-Nikkei
Story 6368 (6752.TO, 6753.TO, 6773.TO, PC, SHCAY, JP3359600008...)
TOKYO (Nikkei)--Pioneer Corp. (6773.TO) will pull the plug on its
loss-ridden television business and shift its DVD player operations to a new
venture with Sharp Corp. (6753.TO) in a sweeping overhaul, The Nikkei reported
in its Thursday morning edition.
The company had been planning to end in-house production of plasma panels by
the end of March and outfit its TVs with Panasonic Corp. (6752.TO) panels
instead. Faced with worsening profit margins, however, it has decided to end
TV development and production altogether.
Pioneer will idle its lone domestic TV factory in Shizuoka Prefecture
sometime this year. Factories in the U.S. and Europe are already slated for
closure.
Sales of Pioneer TVs will continue for the time being. The company has not
yet decided what to do when inventories run out.
Meanwhile, Pioneer will spin off its DVD player operations, which are
equally steeped in losses, to a new company to be set up with Sharp as early
as this spring.
The company plans to eliminate several thousand of its roughly 40,000
groupwide jobs in the year ending March 2010. Pioneer is likely to post a
consolidated net loss of more than Y100 billion for the year ending this
March, wider than the Y78 billion loss it forecast earlier.

 

[Anonymous]

Now we know why there were no new Pioneer models at the CES in January.

Buy your Kuros now. There will be no more

 

[ear]

Can that be true? one less brand out there...

 

[matthewpiano]

I am sad to hear this. Although I sell only Sony TVs I feel that it is vitally important for there to be competition at the top end of the market. Of course, there will still be Panasonic, but Pioneer have considerably turned the heat up in recent years and I feel its spurred all three companies to make better and better sets. My only hope is that Pioneer will be able to refocus and concentrate on their core audio business where they have retained a strong reputation.

 

[Anonymous]

It's like the day Concorde went out of service...the pinnacle of engineering disappeared and we have to make do with what's left knowing that there was once something better!

 

[nads]

OK mine is only a Gen 8 but at least I know there were not many better screens out there.

and i can stop saving.

 

[shado]

Even Panasonic are having their problems with profit losses and job cuts. So how are the more exotic firms faring like Bang & Olufsen and Lowe?

 

[Anonymous]

B&O seem to have succumbed to the same dwindling customer base as Pioneer as their prices have sky-rocketed and profits have tumbled. Loewe on the other hand have increased profits beyond expectation by picking up a lot of ex B&O customers. Perhaps Panasonic will do the same with the demise of Pioneer tv's.

 

[ear]

Nads haha I also think like that.But I love the kuro's especially when they are turned off, It's like that they stand the most in the crowd.less brands, less options, less confusion haha.Who told them to market them at such high prices..not me.

 

[matthewpiano]

We get a lot of customers replacing B&O CRTs with higher end Sony LCDs. It seems B&O have priced themselves out of the market.

 

[nads]

ear:Nads haha I also think like that.But I love the kuro's especially when they are turned off, It's like that they stand the most in the crowd.less brands, less options, less confusion haha.Who told them to market them at such high prices..not me.

but we bought them.

 

[Anonymous]

Are they still going to do the joint plasma venture with Panasonic. Where Panasonic will manufacture Pioneer plasmas?

 

[matthewpiano]

Only thought is... Pioneer don't appear to have made an official announcement about this and so I don't think we can take the news as read. True, the writing has been on the wall for a while, but it may not be as extreme as the article makes out.

If Pioneer do go this way, I wonder how long plasma will last. I also wonder how long other brands can go on producing the top end sets. I think the novelty of HD/digital/thin sets might be waring off and its time for the industry to reposition itself.

Anyway, lets wait and see what Pioneer themselves have to say! I only hope that a re-structured Pioneer can continue to sit at the quality end of the market and that it doesn't shrink to the point where the name gets sold off and used on cheap rubbish, which is what happened to Sansui in the early 1990s.

 

[professorhat]

matthewpiano:If Pioneer do go this way, I wonder how long plasma will last.

Panasonic are still heavily committed to plasma and are a much bigger player than Pioneer (hence the deal Pioneer struck up with them) so, as long as this continues, there will still be plasma sets out there.

I have to say, this does tempt me to go out and buy a Kuro though - it was kind of always my intention to have one but I thought I'd have plenty of time to save up the money!

ÿ

 

[The_Lhc]

Yeah same here, I was going to leave it a couple of months to save some money up, might have to rethink that plan!

 

[Andrew Everard]

matthewpiano:Only thought is... Pioneer don't appear to have made an official announcement about this and so I don't think we can take the news as read.

Story with official comments from Pioneer here.

 

[Alec]

can someone give me a quick technology (and, perhaps, business lesson)?

If they go for buying sets off third parties, are they not just rebadging them? and if so, how do they ensure they meet the standrds they have become known for? or would it necesitate a lowering of ambition on their part, in that they would have to resign themselves to being a more budget and less prestige brand?

also, if it is just panels they outsource (which they do already...?), there's actually more to TVs isnt there? in other words, saying "oh, so n so make their panels" doesnt mean much does it, as far as i can gather from various posts in the past...?

sorry, i havent been very articulate and my second question is awfully unfocussed (and doesnt specifically relate i spose), but if anyone wants to do their best to educate the luddite, id be most grateful

 

[matthewpiano]

You are absolutely correct on all counts Al.

Its unclear yet which path Pioneer will take but if they do start buying sets off a third party (most likely to be Sharp LCDs I would think, given the links) it will, as you say, simply be a rebadging exercise unless Pioneer particularly specify particular design or spec changes over the Sharp models. It would also signify a lowering of ambition in some ways, but then their lofty ambitions have not exactly been making them money, so you could possibly understand such a change.

In terms of panels, most are made by a select few companies anyway, whoever the producer of the television is. A great example is the fact that Sony and Samsung both have their panels made at SLCD, which is a joint venture. This does not mean that Sony and Samsung TVs are the same. As you rightly point out the panel is only a small part of a television. Perhaps the biggest influence is the processing used and its the Bravia Engine that so often gives Sony an edge in the LCD market. Before SLCD, Sony and Samsung (and others) were still often sourcing the same panels. The Sony T3000 used an AU Optronics panel that also appeared in Samsung sets of the time. Even B&O and Loewe buy their panels in from external suppliers (quite often LG!).

 

[Anonymous]

Loewe currently use mainly Sharp panels (Sharp have a stake in Loewe) and some Samsung (S-LCD) panels.

 

[Alec]

matthewpiano:You are absolutely correct on all counts Al.

Blimey! Think i need a lie down lol!

Thanks very much for that, its now as clear as a

 

[Andrew Everard]

An additional statement from Pioneer now added to our news story:

"'The Nikkei's article was published based on speculation by a Nikkei writer, not based on Pioneer's official announcement.

We are now reviewing all the business operations to make our mid-term business strategy group-wide. As soon as it is completed, we will officially announce it.'"