by Christopher Freeburn | October 10, 2013 10:04 am
Sources tell Bloomberg that a major manufacturer is planning to exit the plasma TV market.
Japanese consumer electronics giant Panasonic (PCRFY) will end production of plasma TV sets at its Amagasaki factory, and could sell a portion of the plant. That facility is Panasonic’s only location producing plasma sets.
In the second quarter of this year, the company was the fourth largest manufacturer of flat-panel TVs worldwide, behind Japanese rival Sony (SNE).
Panasonic has faced increasing losses in its TV and display business over the past two years. By selling part of the plant, the company could reduce some of the costs incurred by ending plasma production.
In the company disposes of the Amagasaki plant prior to March, Panasonic could take a $412 million writedown on the end of plasma production.
Plasma TVs have slowly ceded market share of flat screens based on LCD and LCD/LED displays.
Shares of Panasonic slipped slightly in over-the-counter trading on Monday morning.
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