Posts Tagged ‘Sharp’

How The Mighty Have Fallen – By Pete Putman

Last Friday, shares of 100-year-old Sharp Corporation dropped almost 30 percent as investor bailed out on the long-time manufacturer of LCD panels and televisions. The day before, Sharp had warned investors of a possible $1.28 billion loss for the current fiscal year, which ends next March.

 

Previously, Sharp had announced that it would cut 5,000 jobs worldwide. At the company’s U.S. corporate headquarters, the twelve-person marketing and advertising department was laid off recently as the company shifts to more directed M&A efforts within each product segment.

 

This news may come as a surprise to some, but the signs have been there for several years. As I’ve detailed in this space previously, Sharp’s worldwide market share in LCD TVs has dwindled from about 21% in 2005 to less than 8% in 2011, and the vaunted Quattron four-color LCD TVs went over like a lead balloon.

 

To make matters worse, Sharp invested nearly $4.3B in a new Gen 10 LCD fab in Sakai City a few years back, one in which Sony was also going to be a 34% partner and which would make the largest LCD panel ‘cuts’ in the world.

 

But Sony, beset by its own continued losses in the television business, pulled out of the joint venture after capping its investment at 7%. This forced Sharp to look elsewhere for sources of funding, and this past June, it found a ready, willing, and able investor in Taiwan-based Hon Hai Precision, the parent company of Foxconn.

 

Under the terms of the agreement, Hon Hai would have purchased 46% of the Sakai output and also take a 9.9% stake in Sharp Corporation, making it the company’s largest investor. The price tag for that 46% share? About 20 cents on the dollar of what Sharp originally paid to build Sakai, a ‘fire sale’ by any measure.

 

Trouble is; the deal with Hon Hai hasn’t gone through yet. And it may not, now that Sharp’s share price has dropped to a 36-year low, according to a Reuters story. The company’s market capitalization is now just $2.72B.

 

To make matters worse, Moody’s Investors Service downgraded Sharp’s debt rating to Prime-3, which is the lowest possible investment grade. The reasons cited included “…increasing its (Sharp’s) dependence on external sources for liquidity.”

 

How does that affect Hon Hai? According to the story, Hon Hai does not have an obligation to buy Sharp shares at the price negotiated in June. Sharp acknowledges this and the deal may still take place, but at a substantially reduced cost.

 

Enough with the numbers. I’ve said before that we are finally seeing the sunset of the Japanese television industry, just as the U.S. TV industry faded into oblivion in the 1980s. Sony, Panasonic, and Sharp combined expect to sell about 10 million fewer TVs this year, and that will only continue the red ink.

 

Is there an ‘out’ for Sharp? Probably not. What’s more likely to happen is unprecedented, but would not surprise me: Sharp would eventually be acquired in whole by a Chinese manufacturing giant, and Hon Hai is as good a candidate as any.

 

Would the Japanese government allow such an unprecedented sale to go through? Think about it:  What other choice would they have? If Sharp eventually went bankrupt, thousands of people would be out of work and numerous fabs and factories would be shut down.

 

This is clearly a new era of economic power shifting across the Sea of Japan. Institutional investors have been suggesting lately that Sony may be worth more broken up than the sum of its parts (including the money-losing TV operation, which would probably be jettisoned in any such acquisition).

 

Panasonic, which shed much red ink in the past fiscal year due to its purchase of Sanyo, is probably in better shape because of its diversified energy operations. But it, too, will have to down-size its consumer electronics and television operations to restore profitability. (Prediction: The first business unit to go will be the plasma TV operation, as plasma market share continues to dwindle.)

 

These are indeed desperate times for Japanese CE manufacturers. But they haven’t been paying attention to the changing landscape, and they’ve played the ‘wishing will make it so’ game with disastrous results.

 

Yuuki Sakurai, CEO of Fukoku Capital Management, the asset management unit of Japan’s Fukoku Mutual Life Insurance, was quoted in the Reuters story as saying, “Japan’s TV makers are just relying on their past legacies. As long as they depend on TV, they will face tough competition.”

 

And there you have it. How the mighty have fallen…

 

Is a Stampede of Big LCD Displays Approaching?

On Wednesday, July 18, Samsung unveiled its long-awaited 75-inch LCD TV to the public at an event held on the USS Intrepid in its Sea, Air, and Space Museum.

 

The fact that Samsung has a 75-inch LCD cut isn’t anything new. In fact, Samsung showed this very same product at last month’s InfoComm trade show, billing it as the “largest e-LED display available.”

Sharp's not the only one who knows how to serve up a monster TV.

But it was only a matter of time before the product was pushed out onto the market. Sharp has been making waves with their 80-inch LCD TV, which retails for about $5,000 and offers full 1080p resolution with LED backlighting.

 

While sales of this product are relatively small in the consumer space – the size and price are daunting to the average buyer – the commercial AV channel is another beast altogether. An ever-increasing number of dealers are now substituting the 80-inch TV for projector installations, motivated by client demand and a significant reduction in cost over a two-piece projection solution with motorized screen and ceiling mounts.

 

At InfoComm, Sharp took the wraps off of a 90-inch LCD monitor, and a week later, announced a TV version that will sell for about $10,000. That was probably too much ‘buzz’ for Sharp for Samsung to stay quiet about its plans. So, ready or not, here is a 75-inch ES9000 LCD TV product that supports Smart TV and 3D applications and has a built-in retractable camera for Skype conferencing.

 

And it will retail for $9,999.

 

My first take on the price is that it is too high. Even though this is a much skinnier TV than the Sharp and has a barely-noticeable .31” bezel, the damage has been done – Sharp has already established a price point of $5K for a comparable screen size. Look for Samsung’s MSRP to drop a few thousand dollars, especially if commercial integrators show enough interest and can get the extended warranty they managed to pry out of Sharp.

 

Of course, all of these large LCDs pose a real competitive threat to large plasma screens, such as Panasonic’s 85-inch offering which costs more than twice as much. As my colleague Ken Werner points out in his recent post, plasma display technology is not far from the endangered species list, if you go by market demand and units sold for the past four quarters.

 

And the cut-throat nature of the TV business in general is leading to some ridiculous price cuts. Earlier this year, you could buy the Sharp 70-inch LCD TV for just under $2,000, and the delta on 50-inch to 60-inch TVs has narrowed between LCD and plasma considerably.

 

For now, Sharp holds a strong hand with their Gen 10 Sakai LCD fab, the only one that big in the world. Samsung has to crank out their 75-inch glass on a smaller Gen 8 fab, which means fewer large cuts from the motherglass and presumably a higher production cost.

 

We still haven’t heard much from LG Display, who has shown they can build some nice-looking 84-inch panels with 2K and 4K resolution. I can’t imagine they are sitting on their hands and certainly will be a player in the commercial AV space with bigger LCD displays if market demand arises. Look for a ‘big’ LG LCD TV to make its debut this fall as a result.

 

As I mentioned earlier, the consumer TV business is in the tank for all but a handful of companies right now. But there is plenty of demand for commercial installation of these products either as public displays in areas with high ambient light or as replacements for two-piece front projector installations.

 

So are we seeing the beginnings of an LCD stampede? Might want to saddle up your horse and head for the hills, just to be safe…

InfoComm 2012: Growth and Re-Invention, by Pete Putman

As InfoComm 2012 recedes into the rear-view mirror (along with Las Vegas, thankfully), I’ve had a chance to think about some of the more significant trends I spotted at the show. Some have been picking up speed for almost a year, while the others are still moving in fits and starts.

 

Amazingly, the show has managed to glide smoothly over every potential speed bump it has hit in the past 15 years (the demise of the Projection Shoot-Out, the 2007-2009 recession, collapsing retail prices and dealer margins on hardware, consolidation of brand names, and infiltration of consumer electronics into the professional space).

Prysm's laser-phosphor displays didn't generate quite as much 'buzz' this year. Maybe the large LCDs lurking nearby had something to do with it?

 

InfoComm absorbed its nearest competitor (the National Systems Contractor Association’s trade show) a few years back. It has expanded to Asia and Europe. Its education and certification program is second to none, with over 8,000 holders of Certified Technology Specialist (CTS) certificates out there – I’m one of ‘em – and ISO certification of their education process.

 

I started attending InfoComm in 1994 as a journalist. Over the years, I’ve become more intimate with the education side of things, and now about 60% – 70% of my time at the show is taken up with teaching classes. This year alone, I had nine hours of individual instruction to offer to a total of over 750 students during a three-day period. (And I once swore I would never be a teacher. Ha!)

 

In fact, class attendance this year was the highest I’ve ever seen it, and the attendees were predominantly end-users – colleges, hospitals, institutions, corporations, non-profits, churches, and government agencies. The transition from analog to digital has swept everyone up in its wake, and InfoComm attendees don’t want to be left behind.

 

As a result, I didn’t have a lot of time to walk the trade show floor. But the significant products were out there, if you knew where to look. I even managed to feature a few of them in my classes – I’m VERY big on ‘show and tell,’ rather than ‘death by Powerpoint’ – so that attendees could get more information on the hardware and software than they’d find in the average booth tour.

Sorry - there's just no way to fit this thing into a horizontal photo, it's just too darn big!

 

The first trend is ever-larger and cheaper LCD displays. You may have heard that Sharp unveiled a 90-inch professional LCD monitor in Las Vegas (1920×1080, no price yet, but probably under $10K) and followed that up with the announcement of the TV version (LC-90LE745U, $10,999) on June 19.

 

Don’t underestimate the significance of this product. Since its introduction last fall, Sharp’s $5K 80-inch LCD TV product has proven to wildly successful, but not necessarily in the home: No, AV dealers are installing them by the truckload in commercial AV projects, with a special emphasis on financial institutions and corporations who don’t want a two-piece projector/screen ‘solution’ that requires frequent lamp changes, filter maintenance, and ambient light control.

Samsung is ready to play as well with their 75-inch edge-lit LCD monitor.

And for those of you who like watching TV underwater, Panasonic's got the solution!

 

If the 80-inch is a projector ‘threat,’ then the 90-inch is a projector ‘killer.’ Maybe not at $10K, but you know that price will come down quickly as market demand rises – and it will rise – so expect it to be selling for $7,000 – $8,000 before very long.

 

You’ll know this trend has really picked up speed when Sharp’s nearest competitors (Samsung and LG) start pushing their big LCD screens aggressively. Samsung showed a 75-inch edge-lit LCD display at the show with the ominous caption: “Time to Replace Projector in Your Conference Room.”

 

Another trend is ‘ergonomic’ control systems. At CES, there were numerous demonstrations of gesture and voice control, and Samsung has already brought a TV to market (ES7500 series) that combines both with facial recognition. I didn’t see too many demos of either in Las Vegas, but Panasonic had an interesting demo that combined body recognition with gesture control to navigate a series of maps and locate yourself on a virtual campus.

Look, Ma - both hands!

 

The challenges to design such systems are clearly outweighed by the advantages. A conference room or classroom that can recognize a user, power itself up, and load and operate any preferences in hardware and software operation is a very attractive proposition. No doubt we’ll see some more stabs at this built around the Leap platform in the near future (Leap can detect hand motion as slight as .1 millimeters).

 

Wireless connectivity goes hand-in-hand with gesture and voice commands, and I’m not talking about WiFi-based solutions – they are generally the most unreliable choice, although abundant. No, I’m referring to a slew of proprietary technologies that run on separate but parallel highways to WiFi, free of bandwidth-hogging TCP/IP traffic.

Here's a plug for getting un-plugged...from Hitachi.

 

Right now, the most promising of these is the Wireless High-Definition Interface (WHDI), which operates at 5.8 GHz, has a range of several hundred feet, and can support dozens of discrete channels that carry 1920x1080p/60 video, multichannel audio, and data. Hitachi showed a six-port (two HDMI & two VGA) wireless projector switch at InfoComm, along with a super-tiny document camera that also has WHDI built-in.

 

During my Wireless AV class, we treated attendees to the first public demonstration of WiSA – a multi-channel (7.2) wireless audio system that requires nothing more than AC power for each speaker. The room size was 50’ wide, and the technology is scalable to larger rooms. Combined with a WHDI connection to the Blu-ray player and my Toshiba computer, we were able to cut just about every cord (except for power).

 

Projector manufacturers are well aware of the challenges posed by ever-larger and cheaper LCD displays. One way to fight back is to move away from traditional short-arc mercury vapor lamps to lampless projection engines employing LEDs, lasers, or both.

At BenQ, it's all done with lasers.

And at Casio, some of it is done with lasers.

 

Casio took a substantial lead in this market a few years back with its laser/LED hybrids, and finally plugged a hole in its line with the XJ-H2650, a wide XGA (1280×800) design with 3500 ANSI lumens brightness that made its debut at InfoComm. Now, BenQ has joined the fray with a pair of laser-only single-chip DLP projectors, both rated at 2,000 lumens (LX60ST, XGA, and LW61ST, WXGA).

 

But the bigger news came from Panasonic, who not only embraced hybrid technology but jumped all the way to 1920×1080 resolution while doing it. They’re rolling out two different versions – one for education, and one for commercial applications – and the PT-RZ470 is claimed to develop in excess of 3,000 lumens. There is a wide XGA version as well, known as the PT-RW430, and it’s also rated over 3,000 lumens. Both BenQ and Panasonic claim you’ll see about 20,000 hours of operation from the laser/LED light engine before it poops out.

 

Other companies showed ‘lampless’ projection technology at the show, including Optoma. But most of these demos were small, pocket-sized projectors that are good for a few hundred lumens at most. Digital Projection and projectiondesign also showcased LED-only offerings that can hit the 1,000 lumens barrier, but we still haven’t seen a ‘pure’ LED design that can beat the 2,000 lumens benchmark…for now.

 

Haptic control technology – i.e. touchscreen LCDs – was in abundance at the show. Samsung showed a demonstration of a large LCD touchscreen table that can be used to display images of retail merchandise. These images can then be ‘dragged’ onto a Windows 8-equipped smart phone and create a shopping cart, or even a checklist. Whatever is dragged into the smart phone is automatically mirrored to a nearby sales associate tablet, supposedly simplifying the shopping process for both parties.

 

There's probably a cool table hockey demo lurking somewhere in here...

136 60-inch monitors in five walls. You can count 'em.

And here's the videowall in action during the musical.

 

One of the more impressive demonstrations took place at Planet Hollywood, where a new musical was finishing up rehearsals. Based on songs by the Beach Boys (who are celebrating their 50th year with a nationwide tour) , ‘Surf: The Musical’ uses five walls of 60-inch Sharp LCD monitors for all of its scenic backdrops. The walls were designed and built by Adaptive Technologies and can slide in and out and raise/lower during the performance as needed to accommodate some real 3D constructed sets.

 

Each wall weighs about 8,000 pounds and it took some experimentation to figure out an adequate damping system to raise and lower the walls without any bouncing. Dynamic video processing keeps the displayed images static as the walls move up and down, creating the illusion of a curtain. If you get a chance to see the show, you will be impressed with the Ferris Wheel sequence – it felt real to me.

 

I can’t wrap up this piece without mentioning the absence of one of InfoComm’s largest members and long-time exhibitors, Extron Electronics. You’ve probably heard numerous reasons why they opted to skip the show (none of which made any sense to me, particularly since Extron did participate at NAB in April). Extron is a nearly 30-year-old bellweather interfacing company and without them, the Projection Shoot-Out wouldn’t have been possible.  (Neither would the annual Extron Bash party, now R.I.P.)

Kramer erected a new booth to showcase their CORE digital products.

 

Suffice it to say that there was plenty of chatter and speculation in my classes about Extron’s absence, along with more than a few delighted competitors who ‘stayed the course’ and reported strong booth attendance on the show floor. The enormous turnout for any classes that had the words “EDID,” “HDCP,” “HDMI,” or “digital video” in their titles and/or descriptions apparently also meant a tide of visitors to booths showing those products, such as Kramer Electronics.

 

So, there you have it – a quick fly-by of InfoComm. Next year, I’m going to try more ambitious wireless demos (including some products I just found out about at the show) and will expand my digital video curriculum with Web-connected TVs, if everything works out. Try and make it, we’ll be in Orlando a year from now. Should be fun!

 

See you there?

 

 

The Rout Is On – by Pete Putman

As things go, the flat screen TV business is relatively young. Until ten years ago, large LCD TVs weren’t even viable products. And plasma dominated the large screen (42” and up) flat screen TV business.

 

But neither technology held any substantial market share. Instead, CRT televisions (and rear-projection CRT sets) were ‘kings of the hill.’

 

Going back through some of my archives, I found that in the fourth quarter of 2005, CRT TVs held a 78.9% worldwide market share. That represented a decline of 15% from Q4 of 2004, no doubt due to the 137% increase in LCD TV market share in the same time period (yes, you read that right, 137%!).

 

While LCD TVs held a 14.7% market share, plasma TV share grew from 1.8% of all TVs sold to 3.9%, a growth rate of 109%. CRT rear-projection TVs held .9% of the market, a drop of 60% from Q4 ’04, while microdisplay RPTVs grew to 1.6% of the pie, an increase of 52% over the same time period. (All numbers compiled from DisplaySearch reports.)

 

How about the major TV brands? From Q3 ’05 to Q4 ’05, it might surprise you to learn that Sony had the top TV brand revenue share and growth, with 14% of all TV sales revenue (a quarterly growth rate of 130%)! Samsung was right behind with 11% revenue share and 36% Q-Q growth, followed by Philips (9.1% revenue share, 31% Q-Q growth), Panasonic (8.3% revenue share, 13% Q-Q growth), and LG (7.8% revenue share, 28% Q-Q growth).

 

These five companies accounted for 50% of all TV revenue in Q4 of 2005. And there was only about a 6-point spread between #1 and #5, so the pie was being divvied up pretty equally.

 

In terms of TV brand unit share, the order was changed somewhat. LG captured the number one spot with 9.8% unit share in Q4 ‘05, followed by Samsung (9.2%), TTE (7.5%), Philips (7.1%), and Sony (6.9%). The remaining 60% was chopped up among a host of brands.

 

The eye-opener here was when I went back to the beginning of 2005. For the first quarter of the year, Sharp topped the branded TV market share with an amazing 21% (a year-to-year growth of 82%). Philips was number 2 with 14.7% share, followed by Samsung (10.8%), Sony (10%), and LG (7.3%). The five brands accounted for 60% of all TV sales back then.

 

So – in a little less than a year, Sony added 7% to its brand share, while Samsung marched in place, LG picked up about 2 points, Sharp fell off the map completely, and Philips lost half its brand share. (TTE didn’t show up in the 2005 listings at all.)

 

Now, let’s jump ahead to Q4 2011. NPD DisplaySearch’s latest numbers show that LCD flatscreen TVs now account for 86.5% of all TVs sold worldwide. Plasma continues to decline as it pushes into a larger screen ‘niche,’ grabbing a miniscule 6.9% market share. Amazingly, CRT TVs still held a 6.4% share, while RPTVs managed to eke out a .0004% market share – look for this category to be killed off completely in 2012.

 

And the tables have turned completely from 2005 in terms of worldwide market share. Samsung managed the amazing feat of increasing its market share to 26.3% from Q4 ’10 to Q4 ’11, an all-time record and an amazing growth rate of 18% in an otherwise-flat (no pun intended) industry. LG was far behind Samsung with a 13.4% market share, essentially unchanged since Q4 ’10.

 

As for Sony, they also held steady at 9.8%, basically the same as a year before, while Panasonic saw a decline of 2% to 6.9%. Sharp – who continues to sell fewer LCD TVs than Panasonic, incredibly – experienced a decline of 7% from Q4 ’10 to a 5.9% market share in Q4 ’11. These five brands accounted for 62.3% of the 74,236,000 TVs sold.

 

So what does this all mean? First, Samsung has clearly blown away everyone else in the TV industry, opening up a double-digit lead over their nearest competitor (LG) in market share. And those two guys waste time arguing about whether passive or active is better for 3D viewing?

 

Second, we’re seeing the slow, inexorable end of the Japanese television industry, just as we saw it happen in the United States in the late 1970s to the late 1980s. Sharp, Sony, and Panasonic are all hemorrhaging money for the current fiscal year that ends on March 31, and the consumer TV business is the primary reason.

 

When TVs sold for $50 per diagonal inch and up, there was plenty of money on the table for everyone. But now that mainstream TVs screen sizes (up to 55 inches) are selling for $10 – $15 per diagonal inch, the Japanese simply can’t compete anymore. And it will only get worse with Chinese TV brands Haier, Hisense, TCL, and others establishing beachheads on all continents.

 

Third, it’s over. The fat lady has sung. Samsung has won. They set out in the mid-1990s to beat Sony at their own game, and by any reasonable account, have succeeded beyond their wildest dreams. Samsung will make a nice profit on 2011 TV sales, and LG will at least get their LCD TV business back into the black.

 

But the story isn’t so pretty for Sharp, Sony, and Panasonic. Sharp still has no explanation for their continual slide in market share, which apparently began in 2005 and continued uninterrupted, and which has now idled (by some accounts) 50% of their LCD fab capacity. As for Panasonic, they’d already shut down one LCD and one plasma factory in 2011, because demand just isn’t there. And no one in Osaka knows how to fix the problem.

 

Sony is being pressured by financial analysts in Japan to get out of the TV business altogether, a decision which, as painful as it might be to management given Sony’s long and rich history with TV manufacturing, is probably the most sensible thing to do. The company’s TV business has lost money for eight straight years – never mind the strong market share numbers that popped up early on.

 

And it’s not going to get better any time soon, as DisplaySearch stated that 2011 worldwide TV shipments actually declined .3% in 2011, reversing six consecutive years of growth. Only the LCD TV category showed any increase with a bare-bones 1% uptick. Everything else was on a downhill slide, with plasma declining 7%, CRTs falling 43%, and RPTVs in a 51% tailspin.

 

Hitachi has already pulled the plug on their TV business. Toshiba and Mitsubishi will no doubt follow suit in the next 12-24 months. And that will leave us with the Hatfields & McCoys in Korea, plus a host of Chinese brands you may want to get familiar with. (The running joke at CES 2012 is that it was the “Chinese” Electronics Show, and that’s not far from the truth!)

 

The rout is on…

Life (and Death) Go On In The Projector World

Three news items in the past few days are all focused on front projectors (pardon the pun). And each of these news items has a decided air of uncertainty around it, which of course reflects the sluggish economy and a looming paradigm shift away from projected images to self-contained, larger-than-life display technologies.

 

The first item is courtesy of Engadget, who reports that Sony is getting ready to bring a $28,000 4K-resolution projector to the home cinema market. They won’t be the first (Meridian previously offered the JVC 4K D-ILA platform for about $200K), but they will be the cheapest.

 

This announcement, which will no doubt be one of Sony’s big PR blasts at CES 2012, raises a few questions. First, who needs 4K resolution? That represents four times the detail on a full 1920×1080 image, and there isn’t any content available to consumers (yet) that is authored at that resolution.

 

Sure, HDMI v1.4 supports 4K. And you could certainly master a 4K Blu-ray disc, although at current disc capacities, you’d be limited to about 30 – 45 minutes of content with aggressive MPEG4 compression. But for now, 2K (or, more accurately, 2,073,600) pixels represents the upper limit for home viewing.

 

That gives rise to the second question: How will Sony scale 2K content to fit the 4K imaging devices, which are almost certain to be SXRD LCoS chips? It’s not just a line-doubling job. No, scaling 2K to 4K is akin to scaling standard definition video to the 720p HDTV format. And what will 720p broadcasts look like on this projector?

 

Third, how big a screen would you need to actually see the difference between 4K and 2K source material? I’m thinking that the typical 92-inch 16:9 screen at 12 feet isn’t going to cut it.

 

The second news item comes from Quixel Research, who reports that USA sales of 3D projectors for home use increased by 121% between Q2 and Q3 of 2011. That number represents 16% of all home theater projector sales, which sounds pretty impressive.

 

Ahh, but the devil is in the details, as usual. Sales revenue for 3D home projectors grew by only 14% in the same time period, a trend Quixel attributes to a “recent onslaught of low-cost 3D models” in the channel. Not so impressive, and even less so when you learn that the overall home theater projector market saw a 7% decrease in volume from Q2 to Q3 2011, even though the category saw a 2% increase year-to-year.

 

The culprit? Look no further than plummeting prices on bigger and bigger TV screens. For less than $3,000, you can buy a Sharp Aquos 70-inch LED LCD TV with all the trimmings. And their newest model measures 80 inches diagonally, and will retail for less than $5,000. Who needs a projector when you’ve got a self-contained TV screen that large? (Betcha Sharp shows a 90-inch+ LCD TV at CES!)

 

My belief is that 3D front projection make a whole lot more sense at home than small 3D TVs (less than 55 inches). Most people sit too far away from 3D TVs to get the full effect, and they rarely pay attention to controlling ambient light spilling on the screen.

 

But 3D front projection turns that equation around. It’s easy to get a big 3D image and not spend a ton of money to do it, and screens tend to be placed in rooms where lights can be lowered or shut off altogether, just like in a movie theater.

 

The problem is that projector manufacturers have slashed prices too low, too quickly. Got $2,000 in your pocket? You have quite a selection of stereoscopic DLP and 3LCD front projectors to choose from; of which a few models are tagged around $1,500. That’s a lot less than a 70-inch LED LCD TV costs – for now. But margins are very thin on such products.

 

The last item comes by way of AV Interactive, the top pro AV publication in the United Kingdom. According to their Web site, Sanyo will cease to exist as a brand name by the end of the 1st quarter of 2012 (also the end of the fiscal year for Japanese companies).

 

How the AVI staff found this out is interesting: They got hold of a letter circulated by Panasonic to ‘business partners’ informing them of the decision. (I assume ‘business partners’ means dealers and distributors.)

 

Readers from the pro AV industry will of course recognize Sanyo as one of the top projector brands, fronting an amazingly-large lineup that ranges from ultraportables to 10,000-lumens behemoths for auditoriums and theaters. They’ve also done pioneering work with short-throw projection as well as LED-powered light engines.

 

For those readers who missed the headlines, Panasonic acquired Sanyo in December of 2008 for about $4.6 billon, primarily to scoop up the latter’s industry-leading battery and renewable energy technologies. Solar cell technologies were also in the mix. I found out about the acquisition while having dinner with several Sanyo executives in Osaka that night, which of course made for some very interesting conversations.

 

At the time, I assumed that the Sanyo and Panasonic projector business units could co-exist nicely. Panasonic does very well in high-brightness DLP projectors, while Sanyo projectors are ubiquitous in hotels, classrooms, conference rooms, and even home theaters. But it appears that’s not going to be the case, as Panasonic will instead pull a ‘borg’ move and completely assimilate its prized acquisition.

 

Ironically, the two companies have family ties that go all the way back to the period just after World War II. Sanyo was born when Toshio Iue, a former Matsushita employee and the brother-in-law of Konosuke Matsushita (the founder of Panasonic), began manufacturing bicycle generator lamps in an unused Matsushita plant in 1947.

 

What will happen to all of the Sanyo and Panasonic projector business unit employees is uncertain at this writing; although it’s likely there will be substantial staff reductions. No word yet on whether Panasonic will continue to offer Sanyo-designed appliances (possibly), LCD TVs (unlikely), and cameras and camcorders (also unlikely).

 

What we will see from Panasonic is a wider portfolio of rechargeable batteries and energy-efficient devices. That may be the only legacy of Sanyo to survive after April 1 of next year. Too bad, because I love my Sanyo Xacti 1080p pistol camera and my brother loves his Sanyo 32-inch LCD TV. And I’m sure many readers love their PLV-series Sanyo home theater projectors, too.

 

Tempus fugit…