Posts Tagged ‘3D TV’

Is Toshiba Spitting Into The Wind?

Toshiba CEO Hisao Tanaka was recently quoted in the Wall Street Journal as saying he wouldn’t give up on the company’s money-losing television and computer business units.

Toshiba has lost over $500M in each of the past two years in its television business, and its personal computer operations are also coming up short as more consumers turn away from laptops in favor of tablets and large smartphones.

In terms of market share, Toshiba’s TV revenues definitely fall into the “other” category. NPD DisplaySearch’s final numbers for 2012 show Samsung with nearly 28% of worldwide TV shipments, followed by LG at 15% and the grouping of Sony, Panasonic, and Sharp combined making up 19%.

That leaves 38% for “other” and that group includes third-tier brands form China, which are growing rapidly and taking more market share every year. The last time Toshiba had any substantial market share was about two years ago when they captured 7% of the worldwide TV business. But they’ve fallen to #6 behind Sharp, who is barely hanging on to a 5% market share.

Tanaka told the Journal that Toshiba would shuffle around some employees and cut back on the number of TV models it produces. Readers may recall that Toshiba made a big splash a couple of years ago with autostereo 3D TVs at CES and continues to demo them, even though demand for 3D TVs has largely dissipated. Toshiba is also a player in 4K, with a 55-inch offering and a new 84-inch (LG Display) TV coming to market.

Many analysts (myself included) fully expected Toshiba to throw in the towel after Hitachi pulled the plug on its TV operations more than a year ago. You can still find Hitachi TVs in some retail chains, but these are merely OEM products made in Taiwan or China that have the Hitachi name slapped on them. Toshiba was expected to do the same since they do not manufacture LCD glass for televisions but buy it from various manufacturers.

What keeps the company going are profitable operating units that manufacture flash memory and power equipment, according to the WSJ story. You may recall that Toshiba did at one time manufacture small LCD panels and has also dabbled in SM OLED manufacturing, so the company is quite diversified and still able to overcome the losses from TV manufacturing and sales. And Toshiba even brought out a line of 10-inch tablets in 2011, named “Thrive.”

That’s not to say that the company is willfully stubborn. Not that many years ago, Toshiba did throw in the towel on front projectors. The company had a full line of home theater and business projectors as recently as three years ago, but couldn’t carve out enough market share to justify the expense and effort, so they simply walked away from the business.

Does Toshiba really have a trick up its sleeve? Can it become profitable again with televisions? That’s unlikely, as all of the major Japanese TV brands are trying to reverse flows of red ink, and some of them even manufacture their own LCD panels.

Tanaka said in the interview that he thinks TV sets and computers are an important part of creating “smart communities” and that health care will be a big part of the company’s focus in years to come. Toshiba certainly hasn’t given up on innovation (witness their autostereo and 4K projects) and they still have strong brand recognition worldwide.

Who knows? Maybe the winds will change direction?

Goodbye, 2012. Don’t Let the Door Hit You on the Way Out

This will be my last post for 2012. And what a year it’s been.

We were dazzled by 55-inch OLEDS at CES nearly a year ago that will not make it to market. We’ve seen record financial losses at some of the most venerated names in consumer electronics (Sony, Panasonic) and one long-time Japanese brand on the verge of bankruptcy (Sharp.)

TV sales continued their decline from last year, as did TV prices. It’s now possible to buy 42-inch LCD TVs for quite a bit less than $400. The obituary is being written for plasma, according to most analysts. (I agree.) Many LCD TV manufacturers and retail brands are now branching into (get this) LED lighting.

Viewing of traditional broadcast TV channels fell off the cliff this year, except at NBC. AMC is the hot channel now, and ironically,  they used to just run old movies with innumerable commercial interruptions. There is evidence that cord-cutting is gaining in popularity (it’s the economy, stupid!) and video streaming has supplanted sales and rentals of DVDs and Blu-ray discs. My gosh, Disney and Netflix are now partners in streaming!

The hot products this season aren’t TVs, although really big screens are dirt cheap and have seen a spike in sales. Digital cameras are threatened by smart phones, with 2012 shipments off by as much as 40% from last year. Now, we have DSLRs and point-and-shoots with built-in Web browsers, quickie image editors, and the Android OS. (I think that’s called a phone now?)

No, the hot product this year is the tablet. iPad, Surface, Nook, Galaxy, Kindle, take your pick – they’re all popular, and the Consumer Electronics Association predicts that 50% of American homes could own at least one tablet by the end of the holiday selling season.

Interest in 3D has largely waned among the general public and TV manufacturers, contrary to what you may read on some die-hard 3D enthusiast Web sites. From all accounts, the 3D Olympics broadcasts found their biggest audience in the production trucks adjacent to the events in London.

So what’s the next big thing? Why, it’s 4K, otherwise known as Ultra HD (except at Sony, who always marches to the beat of a different drum). Never mind that there’s no content to watch; you can buy in for a mealy twenty grand. Or, you can wait until after CES and pick up one of the new Chinese 4K TVs for a lot less.

Prices for flash memory are dirt cheap, further depressing optical disc sales. You can buy 32 GB SD and Micro SD cards for all of twenty bucks now. That’s enough space to hold almost six two-hour 1080p movies, using MPEG4 H.264 compression.

We’re seeing a major shift away from value in hardware to value in software – content, apps, whatever you want to call them. Face it; “electronics is cheap!” And more and more of our gadgets are coming from China, which is evolving into the largest market for consumer electronics in the world.

Front projectors came under heavy fire in the commercial AV space, threatened by super-cheap and big LCD TVs. But they’re firing back by adopting lamp-less projection engines, using LEDs, lasers, or combinations of the two. The rear-projection TV category is officially RIP now, after Mitsubishi threw in the towel in late November. If it ain’t flat, consumers don’t want it.

You know things are nutty when Samsung and Apple seem to spend most of their time in court suing each other (and Google, and vice-versa), yet all three companies paired up to make a $500M bid for Kodak’s digital imaging patents. You remember Kodak, right? They once made photographic film, and cameras, and processing chemicals, etc. (Don’t remember them? You must be a Millennial.)

The industry is obsessed with the “second screen,” although they can’t quite define how it is used and how often. We’re obsessed with the idea that we can stream any movie or TV show we want, at any time and in any place, but continue to be surprised when the monthly bill comes in from Verizon, AT&T, Comcast, Time Warner, and so on. And why is it that broadband speeds are so much faster abroad, in countries where the government often maintains the telecommunications infrastructure?

Despite claims that more airwaves are needed for wireless broadband (at the expense of UHF TV broadcasters), we found out the hard way during Hurricane Sandy and other extreme weather that, more often than not, broadcast TV was the only reliable way to get news updates when the power went out, trees fell down, and buildings flooded. (Some lessons are just hard to learn!)

It’s been quite a year, and Ken and I have enjoyed trying to explain the significance of many of the developments that you’ve heard and read about. We’ll continue to do so in 2013 on an all-new Web site (same name) that should be somewhat easier on the eyes and faster to navigate.

Look for a launch of the new site sometime in mid-January, right after that annual exercise in electronic insanity that takes place in Las Vegas every year. Both Ken and I will have our usual coverage and analysis, and maybe we can even find a couple of gems amongst all of the electronic detritus that lines the aisles of the Las Vegas Convention Center.

That’s it for now. Have a safe and happy holiday season and a safe New Year. And in the wake of the Newtown, CT tragedy, remember to keep all the gadgets we lust after and “can’t live without” in perspective: It’s just a bunch of dumb wires and components when all is said and done.

There are more important things in life…

Frequently Asked Questions

I haven’t run a Letters column on HDTVexpert.com in several years. And there’s a good reason for that: With everything else on my plate these days, I keep forgetting to do it. (That was Steve Martin’s favorite excuse, as I recall: “I forgot!”)

Even so, I find that there are certain questions that keep popping up after my classes and presentations, not to mention after some of my more controversial articles. And there’s no better time to address some of them with the holiday shopping season now upon us.

So let’s get started!

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Q. What (kind of) (brand) (size) TV should I buy?

A. Not surprisingly, I get this question a lot. But you may be surprised at my answer: Whatever you like.

The fact is; TV prices have never been lower. I spotted numerous Black Friday specials where TVs were selling for less than $10 per diagonal inch. Imagine that! You can pick up major brand 42-inch LCD TVs for less than $400 now. $900 will buy you a major brand 60-inch plasma TV (that price was $1000 a year ago). Heck, you can score a 70-inch LCD TV for $2,000!

Frankly, it’s hard to go wrong these days. Prices are so low that even if you grow disenchanted with your purchase after a year or two, you can just recycle it and buy a new one. To put things into perspective, add up what you pay for mobile phone service annually, plus the cost of a smart phone that you’ll get rid of in two years.

Is that number on the high side of $1,200? For about the same amount of money, you could buy a pair of 47-inch LED-backlit LCD TVs. Or a fully-loaded “smart” 3D LED LCD TV with Web browser. For what my 42-inch Panasonic TH-42PZ80U cost me in September 2008 ($1,099), I can now buy two 42-inch 1080p plasma TVs and get more HDMI inputs with reduced power consumption. Amazing!

Here’s a tip: No need to rush out and grab a TV before Christmas. The best deals are typically in the weeks leading up to the Super Bowl, so if you can wait that long, you’ll see some huge savings. But even if you just gotta watch your favorite college or pro team on a new TV, you’ll still find some great prices through the next four weeks.

 

Q. You’ve always been a big advocate for plasma. Now you’re telling me that plasma is going away. How can that happen? Don’t people care about picture quality?

A. It’s simply a matter of economics. The TV-buying public has voted and voted overwhelmingly for LCD technology. One of the major consumer preference studies commissioned earlier in 2012 revealed that residents of the United States generally prefer big, cheap TVs, and don’t care much about the display technology, or Web browsers and 3D. They just want more screen for the buck – and they’re getting it, judging by current retail prices.

Does plasma still have an edge over LCD in terms of picture quality? Well, if you prefer deeper blacks, wider viewing angles without color shifts, and colors similar to what the best CRT TVs and projectors could produce back in the day, then plasma is the way to go.

But LCD TVs are often sold on form factors – how thin they are, how light they are, and how cool they look when turned off and sitting in your living room or family room. Some folks like ‘em because they’re so bright and are largely unaffected by high ambient light levels. And you can’t buy smaller plasma TVs (<40 inches) these days. Last time I looked, the 2nd-largest screen size category in terms of TV sales was 30 to 39 inches. That’s 100% LCD territory.

Plasma TVs are only made by a handful of companies (Panasonic, Samsung, and LG). Plasma TV shipments have been steadily declining over the past five years, aside from a little bump a couple of years ago. Plasma’s share of all TV shipments in Q2 2012 was about 5.5%, which means that more CRT TVs were shipped worldwide than plasma models. (You could look it up.) Simply put; people just aren’t buying it.

Pioneer got out of the plasma TV business almost 5 years ago because they could not compete on price and volume. Panasonic once predicted it would be shipping 11 million plasma TVs a year – that number is now less than half, and Panasonic has been forced to idle a good portion of its plasma fabs as a result of declining demand. (That’s also why Panasonic is now pushing 42-inch, 47-inch, 55-inch, and eventually 60-inch LCD TV screen sizes.)

It’s hard to argue with the numbers.

 

Q. Now that TV prices are so low, should I still have my TV calibrated?

A. Not really. Just about every TV I’ve tested has at least one preset picture mode called “cinema” or “movie” or something like that. If you switch your TV into that mode (or one of the ISF Day or Night modes if present), your TV will be “close enough for government work” when all done.

To be sure, go into your picture menu and check to see that (a) brightness is around 45-50, (b) contrast is about 75-80, (c) sharpness is set to zero, (d) color temperature is set to “mid” or “warm,” (d) and any “auto” gamma, black level, contrast, or brightness modes are disabled or also set to zero.

I’ll wager that you’d be quite happy with your TV’s picture quality after all that. And you will have saved yourself quite a few dollars that can be put to better use, like your monthly pay TV subscription. Or a sound bar to overcome the acoustical limitations of super-thin TVs.

I should add that I still see some value in calibrating home theater projectors, even though some of them also come with “cinema” and “movie” picture presets. Getting the best projected image quality in a darkened room is a very different and more complex process than getting acceptable TV image quality in a fully-lit room.

 

Q. You seem to have it in for Blu-ray and 3D sometimes. Why?

A. I don’t have any particular bias against the Blu-ray format. I own five Blu-ray players and have a sizable stack of movies (as well as a Toshiba HD-DVD player and a stack of HD-DVD discs. Any takers?). And there’s really nothing else out there that compares in image quality to movies on Blu-ray.

What I have taken other analysts, reporters, and public relations companies to task for is ignoring the shifting sands of public opinion, which now clearly favor electronic delivery of movies and TV shows via streaming (Amazon, Netflix, Vudu, and Hulu) over physical discs; the sales and rentals of which are in a steady decline.

I have long maintained that the average consumer doesn’t really care if they own a physical copy of a movie – they just want to be able to watch on their schedule. And for better or worse, streaming services satisfy that desire. Never mind that the picture quality isn’t always that great, or that the stream locks up from time to time. People value convenience and price over quality most every time (it’s an old axiom of economics), and Netflix and Amazon give it to them.

If and when Internet speeds get fast enough on a consistent basis, I’d bet that most consumers would be happy to stream HD movies from a ‘cloud’ server and drop the discs altogether. Or load them onto flash memory for viewing on multiple platforms, like tablets. Why do you think so many WiFi-enabled Blu-ray players have been sold in the past couple of years? It’s for the access to Netflix, YouTube, and Hulu.

Be honest now. How many movies do you have sitting unwatched on shelves in your house, still in their original shrink wrap? Birthday presents? Holiday gifts? Impulse purchases? Who knows from where they came. Unfortunately, it’s hard to get rid of used DVDs these days – even the local libraries don’t want them. Times are changing.

As for 3D, which seems to come along every other sunspot cycle, it was just too expensive and too confusing to the average consumer, who (as I stated earlier) just wants a big, cheap television. The early lack of 3D movie content (caused by exclusive Blu-ray “bundles”), competing presentation formats (active vs. passive vs. autostereo), and scarcity of 3D TV channels (DirecTV’s 3D channel has all but been shut down) just added to the problem.

3D has its place, and right now it’s better suited to larger screens in controlled viewing environments, such as movie theaters and theme parks. TV manufacturers don’t spend much time promoting 3D anymore – they’re just trying to figure out how to get you to buy a new TV these days; any TV.

So 3D will just become a another bell and whistle that you can embrace or ignore on your $800, 55-inch super-thin LED “smart TV” next January.

 

Q. Is there really that much difference between indoor TV antennas? You’ve tested a bunch of them – isn’t it more about marketing hype than anything else?

A. There are many folks out there that are trying to “huckster” people out of their hard-earned cash with “enhanced” or “high-performance” indoor antennas that are little more than a variation on the 60+-year-old bow tie design.

A good example would be the Clear Cast X1, which is little more than a bow tie in a solid plastic housing, connected through a l-o-n-g piece of small diameter, lossy coaxial cable.  This antenna doesn’t work substantially different than a $5 bow tie that Radio Shack used to sell.

Yet, Clear Cast got quite a few people to shell out $70 for it (including me, but that was for testing purposes, not because of a condition of temporary insanity in my part!).

I’ve seen expensive antennas made out of old satellite dishes and UHF yagis. I’ve seen loop antennas, “placemat” antennas, and cylindrical antennas. (Remember the $400 Terk “tanning lamp” HDTV antenna from the late 1990s?)

The physics of TV antennas haven’t changed much since the 1940s and 1950s. Most antenna designs you see now are similar to patented designs from back then, only with some tweaks or enhancements. That said; there are some clever “placemat” antennas available for sale now, and the best models I’ve tested so far are made by Mohu. (The Walltenna isn’t too shabby, either, and Winegard’s FlatWave is a decent performer.)

I’ve gotten a few more models in recently for reviews and will probably just re-test the entire batch soon to establish a new baseline. From experience, I’d say that you don’t need to spend much more than $50 for a good performer, unless you want an amplified version. That will run you another $20 – $30.

But you should be cautious about indoor antennas that sell for three figures – you may be buying more marketing hype than anything else. Caveat emptor!

 

Q. You’ve been predicting recently that projectors are on the way out, and that large LCD screens are going to replace them. Yet, I continue to see market forecasts that projector sales will increase substantially each year. How do you explain that discrepancy?

A. What I’ve stated on more than one occasion is that the availability of large and inexpensive LCD screens (TVs and monitors) will have an impact on projector sales for small to mid-size rooms. That would be conference rooms, meeting rooms, boardrooms, and classrooms that seat anywhere from half a dozen to 50 people.

And I am not making this up. As I travel across the country teaching classes for clients, presenting at major trade shows, and just informally talking to AV consultants, designers, dealers, and systems integrators; I hear again and again that this is actually happening, and not on a small scale.

Apparently, the major push for dumping projectors and moving to a one-piece high-resolution display that doesn’t care about ambient lighting is coming from clients, who see Sharp’s 80-inch LCD TV for $3,999 at Costco and Best Buy and wonder why they can’t put one (or two) in their company offices.

From what I’ve heard, this is a strong trend at financial institutions. Based on early responses to threads I’m running on several LinkedIn groups, it’s also happening in classrooms. Shipments of large LCD and plasma monitor supports are running far ahead of rear-projection frame and supports.

The math behind it is easy to figure out. A two-piece projection screen (usually motorized) and ceiling-mounted projector wind up costing far more than the 80-inch TV (yes, dealers are installing those and getting a multi-year warranty on them). And there are no lights to dim, and no lamps to replace. I don’t have any empirical data on mean time between failures (MTBF) for these large TVs. But so far, people seem very happy with them.

Keep in mind this old saw: A one-piece display solution is always preferable to a two-piece display solution. That’s what’s driving this trend.

 

Enough! Time to close up the mail bag and enjoy the rest of the month before CES hits. Happy holidays!

Samsung 2012 Spring Showcase – Pete Putman

Tempus fugit! The Time Warner Center in New York City will soon shed that moniker, as TW sells off its former ‘prime’ real estate holdings in the city to save money.

 

It should be no surprise then that the Samsung Experience pavilion on the 3rd floor is also history. This electronic ‘toy store’ once showcased the latest in Samsung TVs, phones, Blu-ray players, tablets, and even appliances, and it also served as the venue for Samsung’s annual spring line shows.

 

No more. The 2012 spring show took place March 6 at the Metropolitan Pavilion on 18th Street, the site of the rapidly-growing CEA Summer Line Shows. And it was a relatively sedate affair, choosing to focus on ‘connectivity’ – connected Smart TVs, connected digital cameras and tablets, and connected humans. That is, humans using more intuitive methods to ‘connect’ to their TVs and control them.

Samsung VP Joe Stinziano touts the new Smart Evolution upgrade module.

 

The big news for 2012 is the ES-line of LED (LCD) TVs, which take full advantage of voice and gesture recognition for control. The TV comes with a built-in camera and takes a picture of each user, which is then used to store your preferences. The camera can even pick you out of a crowd.

 

Voice controls include basic volume up/down and channel up/down operation, or direct channel numbers. You can also change inputs and launch a Web browser, at which point the gesture control takes over. This was demonstrated at CES to a long line of attendees and will probably be a popular item for ‘geeks.’ (I’m not sure yet if I want my TV to watch me while I’m watching it!)

 

Voice and gesture control will be standard on the ES7500 46-inch, 50-inch, and 55-inch LED TVs, ES8000 46, 55, 60, and 65-inch LED TVs, and 51, 60, and 65-inch ES8000 plasma TVs. Prices start at about $2,200 for the line, and all models are shipping now.

 

One big question that keeps coming up as NeTVs evolve into full-blown Web browsers with powerful CPUs is this: Is there any way to make them future-proof? After all, Apple and Microsoft update their operating systems on a frequent basis, so why should anyone worry about their TV becoming obsolete?

And here's what the Smart Evolution module looks like in action.

 

This problem is solved nicely (from Samsung’s perspective) with Smart Evolution, which is basically a chassis that mounts on the back of the TV and contains all the latest firmware and hardware updates. Readers who’ve been following the HDTV market for the last decade may recall that Mitsubishi came out with a similar product over 10 years ago – an expansion module they called “The Promise” that fit into their line of rear-projection TVs. (And how well did THAT idea work out?)

 

In addition to built-in cameras and noise-canceling microphones for using Skype and voice/gesture control, Samsung also unveiled a new, super-simple remote control that is remarkably free of buttons. It’s actually a touch pad, with volume and channel buttons mounted on either side. It does double duty as a microphone for voice commands, and also ships with the ES7500, ES8000 LED, and ES8000 plasma TVs.

 

You are probably not surprised that Samsung also unveiled a full-sized Bluetooth keyboard to work with the same ES line of TVs. That’s because the keyboards on most remotes are too small for Western fingers (certainly for me!) and you may be on a Web page where you need to enter strings of text.

Now, be nice and share with your brothers and sisters!

 

Hold on there, pardner! Have we gone back in time to the days of Web TV? Historically, TV viewers have clearly shown their disdain for using a keyboard to watch television, and there’s no reason to expect that will change any time soon. Fortunately, the new Smart Touch Remote can also activate an on-screen keyboard which can then be ‘swiped’ to enter text or numbers for Web pages.

 

Other enhancements to the TV line include Micro Dimming to achieve more precise local area dimming on LED TVs and improve contrast uniformity, and the availability of Real Black Filter across all of the plasma TVs in the 2012 line.  The purpose is to minimize reflections and light scattering that lowers contrast and elevates black levels – Panasonic uses a similar technique on its plasma TVs.

 

AllShare is a new concept from Samsung. According to the press release, All Share lets viewers share content to a variety of connected devices, such as tablets, laptops, and smart phones. The content is stored on 5 GB of ‘cloud’ server space. In addition, any Web site that’s being browsed on a mobile device can be re-directed and launched from a compatible Samsung Smart TV.

 

At least one reporter asked if AllShare competes with Ultraviolet, the movie industry’s ‘cloud’ system for cross-platform viewing of content. Actually, all Ultraviolet does is to store keys on its ‘cloud’ servers, and those keys are then used to unlock and watch copies of movies previously purchased on a wide range of platforms. In contrast, AllShare stores the content, not keys.

Smart Hub is still here. In fact, everything about Samsung TVs is 'smart' these days.

 

To keep up with all of this content and GUI juggling, the ES7000, ES7500, and ES8000 TVs now have dual-core processors for high processing speeds. OK, computer! (Sorry, Radiohead fans…)

 

In the Blu-Ray department, there are five new models ranging from the entry-level BD-ES300 ($99.99) to the loaded-for-bear BD-E6500 ($229.99). Depending on the model, you’ll have built-in WiFi, an internal Web browser, access to All Share, Smart Hub, and Disc to Digital, a new service that lets you ‘rip’ a DVD or Blu-ray file to a digital file accessible to connected (mobile) devices. (Hmmm, sounds a lot like Ultraviolet to me!)

 

It’s interesting to stop and consider that just five years ago, a ‘bare bones’ Blu-ray player would set you back nearly $1200, with some models approaching two grand. Now, you can have every option you want or need – including Internet connectivity – for less than $200 after online retailers slash their advertised pricing.

Samsung's 2012 plasma TVs may have the thinnest bezels ever.

 

And what about 3D? There was almost no discussion of it this year, quite a change from the hullaballo of 2010. 3D is largely a standard feature now in higher-priced TVs (like that ES7000-7500-8000 lineup again) because consumers just haven’t bitten on the concept.

 

One thing Samsung has done for 2012 is to cut the price of replacement active 3D glasses to (ready for this?) $20 a pair; a price that should really tick off early 3D adopters who had to fork over $100 or more to replace their active glasses each time Junior inadvertently sat on and broke them. The lower price point isn’t likely to stimulate 3D TV sales – nothing really has, not even passive or autostereo – but it’s still a nice gesture to the small group who grooves on the third dimension.

 

And now for the 800-pound gorilla in the room: No, Samsung did NOT show an OLED TV in New York. BUT – there apparently will be an OLED TV in the line, most likely using the 55-inch cut. And of course, it will be loaded to the top with all of the Samsung add-ons (Smart Hub, AllShare, voice/gesture control, etc.) We’ll probably see it late in the year.

 

My (educated) guess is that the pricing will be about $8K – $10K, or where LG has hinted its 55-inch product will be tagged when it gets to market sometime late summer or early fall. Given Samsung’s desire to sell off its money-losing LCD fab business and place more emphasis on OLED technology through its Samsung Mobile Displays division, it might be the perfect time to launch OLEDs. (Or maybe not, if yields aren’t high enough…)

 

Trivia time: Remember when a 42-inch plasma cost $10,000? That was over ten years ago, and you can now buy Samsung’s 43-inch entry-level 720p PN43E450 for less than $550.

 

Amazing…

 

 

Ho-Ho-Ho! Is Turning Into Uh-Oh-Oh!

The results are in, and they aren’t pretty.

 

Both Sony and Panasonic posted substantial losses for the current fiscal quarter and are looking at lots of red ink next March, when their current fiscal year ends. Sony forecast a $2.2 billion loss for its TV operations in the fiscal year that ends next March. Overall, the company is looking at a $1.1 billion net loss for the current financial year, which reverses an earlier prediction of a $730 million profit.

 

This is Sony’s eighth straight year of losses for its flagship TV lines and rumors are flying that its S-LCD partnership with Samsung may be deep-sixed. Earlier, Sony announced it would split its television business into three divisions, consisting of (a) outsourcing, (b) the current LCD TV business, and (c) next-generation TVs (read: OLEDs), starting November 1.

 

But that may not be enough to stem the tide. Some prominent Asian market analysts think Sony should bite the bullet and just pull the plug on TVs altogether, concentrating on their gaming console, smart phone, VAIO computer, and camcorder operations.

 

The easier path to income may be for Sony to license its name to a Chinese TV manufacturer and collect royalties, much the same as Philips has done with Funai in North America.

 

Panasonic is looking at as much as $5.4 billion in losses by year’s end. The culprits are the high value of the yen against the dollar and euro, and the merger and re-sizing of the combined Sanyo – Panasonic operations.

 

Two TV manufacturing plants in Japan will be taken offline, while plasma TV production capacity will be cut by 48%. Further procurement will move to Singapore from Osaka, and plans to relocate plasma fabs to mainland China will also be put into limbo. The company expects to cut its payroll to 350,000 employees worldwide.

 

What does all of this mean to you? Expect to see deep discounts on TVs starting around Black Friday. There will be some amazing deals on large (55 inch and up) LCD and plasma TVs. Even the 3D products are going to come down in price, continuing a trend of diminishing premiums for 3D functionality.

 

So if you are in the market for a new LCD or plasma TV, this could be the perfect year to upgrade. Watch your online price trackers and be ready to move when you see a good price. Right now, you can find ‘basic’ LCD and plasma TVs for about $10-$12 per diagonal inch, up to 55 inches – use that as a baseline when you are wheeling and dealing. Who knows? You may do even better!