Pioneer has officially announced to discontinue the production of plasma displays. Pioneer is now expected to buy the plasma panels from Panasonic brand maker Matsushita Electric Industrial Co.
Pioneer is the world’s fifth-biggest plasma TV producer. However lately it was struggling thanks to a cut throat competition from other leading manufacturers. The company posts a loss of 15 billion yen for this year, which have led Pioneer to stop the production.
Pioneer released an official statement where the company said, “This move will allow us to transform our business model for displays from vertically integrated, capital-intensive operations to a leaner business model geared to making value-added product proposals.”
On the other hand the fact remains the same that Pioneer had spent as much as 100 billion yen to build four plasma panel production units located in Japan. The company plans to close down all the four plants.
Last year Pioneer had also discontinued production of the LCD TVs. Now the Japanese company buys the LCD panels from Sharp.