Sony Loses Huge Stake to Samsung from Joint TV Venture
Sony has sold their stake at a joint TV venture with former partner Samsung for $940 million dollars as the Japanese company continues to face losses from its operations within the TV business.
Sony went into the said agreement after their previous efforts at producing LCD TV proved unable to answer the huge amount of demand from consumers. The agreement entailed them to work together with Samsung for the so-called S-LCD TV when shortage of such was set way too high.
Analysts have indicated that the market for LCD TV have peaked last year with an estimate market value of $100 billion. Eventually, it is expected to shrink by 3% to 4% annually through an overabundance of such TV makes out and the lesser number of buyers.
With the TV market industry landscape being overpopulated with too many choices for the consumers, Sony continued to draw flack for their incapacity to handle the competition well.
Rumours have it that Sony was looking for an exit of the liquid crystal display front. They have been looking to outsource the process of manufacturing their flat-screen TVs to cheaper production entities.
Consequently, Sony is seeing to go over a restructuring of their business models to provide services for the much lower-ended part of the TV market due to the Korean giant’s buy-out for official hold of the new generation display bracket.
After years of continually failing to meet their target unit of sales, they are now pushed to close down offshore plants. The multinational company has recently closed down plants at Slovakia, Spain and Mexico.
Despite of the failure of their TV arm in the business, Sony is still looking for a better outcome out of their bid for control of their mobile phone joint venture with Ericsson that was valued to be at $1.5 billion.
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