Panasonic to Part with Plasma TVs, While Saving with Cuts to Healthcare Unit

By Braden Becker March 18, 2013

Plasma TVs were once the pinnacle of development in high-def television. But as competitors respond, consumer demand changes, allowing the visual entertainment industry to evolve itself. Panasonic is the latest testament to this shift, as the company now plans to sunset its plasma television operations in recognition of a TV business that isn’t what it used to be.

The group is set to make adjustments to its healthcare program at around the same time.

Panasonic saw over $10.5 billion at its peak in the TV market from 2009 to 2010, but is foreseen at less than half that in the next three years. The consumer electronics great is therefore considering a significant shrinkage to its entire TV department over the same time period, to cushion the impact of this stint of decline.

"We are considering a number of options regarding our TV business. But nothing has been decided yet," Reuters reported of a Panasonic spokesperson.

Headquartered in Osaka, Japan, the developer looks to close its operations at its main plasma TV plant in Amagasaki by FY 2014, according to the Nikkei newspaper, having already halted the production of new product for the sake of redesigning its investment in LCD machines for an already limited national flat-TV market.

Panasonic’s decision accompanies a second possible move to amend or cut its healthcare services – a unit which saw an operating loss of about $92.6 million as of March 2012, according to Bloomberg. It has gleaned interest by other entities in buying the program, which helps users examine blood sugar levels and hearing aids, which would boost the firm’s revenue by up to $1 billion.

“The direction is right for Panasonic to try to generate cash by selling and restructuring its business and I feel positive about this direction,” said Koki Shiraishi, an analyst at SMBC Nikko Securities, Inc. “I still worry about speed because cash generated in this way needs time to find buyers.”

Savings the company expects to see as a result of changes to these two sectors will likely help it move past overwhelming competition from Apple and Samsung, and focus on beauty appliances, welding systems and other more lucrative departments.

Edited by Brooke Neuman
Related Articles

The World is His Oyster: Connected Solutions Enable Daniel Ward to See Food

By: Paula Bernier    3/16/2018

Fresh seafood can taste great, but if it is not handled properly, people can get sick, and that can lead to business closures and lost revenues. That'…

Read More

How to Get Ready for GDPR if You've Waited Until the Last Minute

By: Special Guest    3/14/2018

With less than two months until the General Data Protection Regulations (GDPR) deadline, many companies have already started making sure that their bu…

Read More

How Fintech is Helping Create Global Businesses

By: Special Guest    3/14/2018

The growth of Fintech probably has not escaped your attention. Whether you're a customer making contactless payments or an investor weighing up CFD tr…

Read More

Are We Prepared for Automation?

By: Special Guest    3/13/2018

We are barreling toward a future of automation. A great proportion of the six million US manufacturing jobs that have disappeared over the last few de…

Read More

The Dark Web - A Hot Bed for Cybercrime

By: Special Guest    3/12/2018

There is a corner of the internet that is cloaked from every day users. Beneath the typical search engines and web browsers, an illegal marketplace is…

Read More