Sony Head Indicates Flexible Approach on LCD Panel Purchases

By Raju Shanbhag

TMCnet Contributing Editor

 

Sony will adopt a flexible approach to the procurement of liquid-crystal-display television panels. This announcement came from Sony Corp. President Ryoji Chubachi after some of its rivals announced their cooperation in LCD panel development and production. The company currently has a joint venture with Samsung (News - Alert) Electronics Co. with regard to large LCD panels for its Bravia LCD TVs and it also has agreements with other smaller players.

 

According to a report in Kyodo News International, Ryoji Chubachi said, “If LCD supply falls short of meeting our demand; we will expand our range of options. The joint production with Samsung Electronics will remain as the top priority.”

 

The president hinted that Sony could procure LCD panels from any other company if the performance is up to the mark and the price is satisfactory. The company is also looking to expand 11-inch TV production of organic light emitting TVs that Sony has launched for the first time in the world. The company is also considering developing larger versions of this TV.

 

This is the time of mergers in the flat panel market. Sharp Corp. and Toshiba Corp. have entered into an agreement to provide each other with LCD panels and computer chips. Also, Matsushita Electric Industrial Co., Hitachi (News - Alert) Ltd. and Canon Inc. recently announced their cooperation in development and production of LCD panels.

 

Also, Sony is looking to distance itself from making rear-projection televisions. Sony will stop making rear-projection TVs at three plants in Japan and overseas in February. With this Sony joins the long list of companies that are stopping the production of rear projection TV. Recently, Seiko Epson Corp said it had halted production and sales of its rear-projection TVs, while Hitachi Ltd withdrew from the North American rear-projection TV market earlier this year.

 

The market for rear projection flat TVs has come down drastically with manufacturers offering LCD and plasma TVs at attractive prices.