by Anton Shilov
10/31/2013 | 11:55 PM
Panasonic Corp. has announced plans to end the production of plasma display panels (PDP) in December 2013. The company cites soft demand for expensive PDPs as well as progress in development of large LCD panels as key reasons for dropping the business. In addition, the firm revealed plans to create a new business structure and to accelerate the growth strategy of the company.
The company will end sales of plasma TVs for consumer use and PDP related products for commercial use, such as interactive plasma displays, by March 31, 2014, when Japanese fiscal year ends. Panasonic will also stop business operations at the Amagasaki P3 Factory (production currently stopped), the Amagasaki P5 Factory (production currently suspended), and the Amagasaki P4 Factory, which is currently operating, by the end of March 2014.
Since 2000, Panasonic has promoted its PDP business and led the global flat panel display market with its strategy of utilizing PDP for large displays and LCD for small- and medium-sized displays. However, with the rapid development of large-screen LCDs, and facing the severe price competition in the global market, the company consolidated production in the Amagasaki P4 Factory, made a shift towards commercial applications and worked to improve the earnings of the business.
Until now, due to the superiority of the picture, Panasonic’s PDPs have received high appraisal and there has been firm demand from customers worldwide. However, due to rapid, drastic changes in the business environment and a declining demand for PDP in the flat panel display market, it was judged that continuing the business would be difficult and a decision was made to stop production.
Going forward, Panasonic will explore other display technologies and by selecting display panels that are most suitable for each product for both consumer and commercial use, Panasonic will work to develop and provide appealing products which meet the demands of customers, and will aim towards new development of its visual and display businesses.