What They Say
JiJi Press reports that Panasonic has gone ahead with a plan to move production of its smallest sets (and most of its TV production according to the FT) to TCL in China. The firm will continue to make some of its higher end products but sets for Southeast Asia and India will move to TCL, Nikkei reported. Panasonic will still make about 1 million sets per year – which Nikkei puts at 30% of its volume. It will still have production facilities in Malaysia and Taiwan, after closing factories in Japan, Vietnam and India by fiscal 2020
The firm is reported to still have >10% share in the TV set market in Japan, although Nikkei said that Hisense is gaining share and new brands including Iris Ohyama are gaining ground.
The firm had already said that it would stop making TVs in Europe. (Panasonic To Stop TV Production in Pilsen, Czech Rep.) It will also close a factory in Brazil.
What We Think
The FT blames Panasonic’s ‘unfocused strategy and tardy decision-making’ for its position compared to Sony which has double the margins on its TV business. (BR)
