Panasonic's TV division has been in the red recently, as with fellow Japanese TV makers, Sony and Sharp. To make ends meet, the Viera maker has decided to reduce both LCD and plasma production capacities for the time being. Panasonic will also bring in more LCD panels from external suppliers to make up for the shortfall. According to What Hi-Fi's report, the company's TV arm has "lost money for the last four years". Faced with diminishing profits, Panasonic will need to find ways to reduce overhead costs and make the most of its current production capacity.
The company plans to reduce production outputs for the next two to three years. On top of this, Panasonic will be focusing their efforts on more profitable items such as smartphones, tablets, and other consumer electronics. The firm is likely to increase their purchase numbers of LCD panels from LG Display, from whom Panasonic is already buying from. Effectively, the OEM panels will make up 70 percent of its TV requirements for this financial year, and possibly more in the years ahead. However, the company isn't bowing out of the TV business just as yet. Panasonic anticipates its LCD TV sales to inch up to 13 million sets "year on year", but expects a dip of 2.5 million units for its plasma faction.
Source: What Hi-Fi Sound and Vision