Strategy in TECH...
Multiple news outlets including Reuters, Bloomberg, and the Nikkei reported today that sources at Panasonic are saying the company will exit the plasma TV business by the end of this fiscal year, which ends in March 2014. The news, while not totally surprising, means that there will be no plants anywhere in Japan producing plasma sets, and is likely the beginning of the end for the technology as LCD continues to take a greater share of even larger screen sizes.
In a move common in the U.S., but unusual in Japan, the Japan Times reported today that Panasonic Corp. paid ¥1.855 ($18.7 million) to four directors to leave the company in Fiscal 2012. The company broke the news of what is known in the U.S. as a golden parachute in materials circulated along with invitations sent to the shareholders meeting coming up later in the month.
Panasonic Corp. has laid off 20% of their workforce – or 600 employees – in its lithium ion battery operations, according to a report by the Nikkei yesterday in Osaka, Japan. The move was made in an attempt to help turn the division profitable. The company has also decided to restructure their manufacturing processes as the layoffs alone won’t likely be enough to achieve profitability.
WAVE Electronics (WAVE) announced this week that it has opened a new full service warehouse location in Dania Beach, FL, which is located in the more populous southern part of the state – just north of Miami between Hollywood and Ft. Lauderdale. Part of WAVE’s continuing national roll-out, just one month ago the company opened a new full service warehouse in New Jersey. This new Florida location brings their total to 10 locations.
The conventional wisdom in the world of television technology is that LCD won the panel platform wars and most talk of the future has moved from LCD to LED to OLED and beyond. But wait a minute, as new data from market researcher Quixel Research shows, don’t bury plasma in the grave just yet…
For those of you who were at the Consumer Electronics Show (CES) earlier this month: Did you see the new tablet introduced by Panasonic? Featured during the Panasonic press conference as an example of Panasonic’s innovation, the company showed a new tablet computer launching it into the tablet computer fray which is dominated by the Apple iPad…with a rapidly growing Samsung with its Galaxy Note and Tab lines nipping at its heels.
AVWeek, a regular podcast produced by AVNation that sums up the top stories in Audio/Video for the week, featured a post by strata-GEE.com in their November 23rd podcast (published November 26) titled “Episode 67 Canadian Quarters.” The podcast – which features a 55-minute topical discussion by AV-industry luminaries Dawn Meade (Net-AV), George Tucker (World Stage), and Matt Scott (Omega Audio Video) – included a segment based on our post about the recent Nortek consolidation and creation of their new ProAV Group.
Panasonic Corp., once one of the most powerful electronics companies in the world, now finds that its credit rating has been lowered by Moody’s Investors Service to the lowest level still considered investment grade – only one step above junk. Moody’s, one of the largest credit rating agencies, has revised Panasonic’s rating twice before this year – and this third revision dropped the company’s credit rating two grades to Baa3…the lowest level considered investment grade.
Consumer Reports, that venerable organization known for torture testing products, ranking their results, and offering advice to consumers on how to pick the right product for them, announced on Thursday their picks for the Top Ten Electronics products for 2012. The list of their picks will appear in the December issue which is its Annual Electronics Issue.
The company said it tested over 600 products for their December issue, but “only ten standout products made the short list for performance and innovation.”
Last week, we reported on a rumor out of Japan that Sharp Corp. was about to report a dismal interim net loss that was much worse than anticipated. This Wednesday, Sharp confirmed those rumors announcing an interim (Apr-Sept) operating loss of ¥168.9 billion ($2.1 billion). This result was after a ¥84.4 billion ($1.1 billion) charge for costs associated with restructuring their struggling business.
But what really has the industry and investors talking is that the company affirmed that it is likely to show a “huge” net loss for the entire fiscal year of ¥450 billion ($5.6 billion), almost double a previous estimate of ¥250 billion. It is also well above analysts’ estimate of a ¥296 billion loss according to a survey of 17 analysts by Bloomberg. [Read more…] about Can Sharp Survive? Company’s Performance ‘Raises Serious Doubts About [Our Ability] to Continue’
