Panasonic, a long-time leader in consumer electronics announced on Tuesday (May 31) that it would stop manufacturing large LCD panels for televisions at its Himeji fab in western Japan. Production will wind down this summer and stop completely in September, with the balance of IPS LCD panels going to transportation and medical markets.
Himeji was a relatively new fab, having come inline in 2010. This is where Panasonic’s IPS-Alpha LCD TVs were born even as the company’s plasma TV manufacturing business was going into a nosedive. And that line of TVs was well-received by the trade press and the general public.
But it turned out that LCD panel manufacturing in Japan is a costly effort, compared to manufacturing in Korea and China. Indeed; many Panasonic LCD TVs use glass that’s made across the China Sea, and that trend goes back a couple of years. According to a story on the Reuters Web site, “…the plant has never logged a profit during years of heavy price competition with South Korean and Chinese rivals.”
It doesn’t help that Panasonic has virtually no U.S. market share in LCD TVs, having fallen behind Vizio and Hisense even as competitors like Toshiba, Mitsubishi, Pioneer, and Hitachi have all packed it in over the past decade. And with all of the company’s eggs in the plasma basket for many years, they were late to wake up and smell the coffee.
A quick online check of Best Buy, HH Gregg, and Fry’s Web sites showed no listings for Panasonic TVs – not even among Ultra HD models. So I went to the company’s U.S. Web site and searched again, finding six models of Ultra HDTVs ranging in size from 50 inches to 85 inches – and all of them carried the notation “Not available.”
I got the same results when I clicked on “View All TVs,” and actually got a smaller selection of Ultra HD models to peruse. So no major retailer carries Panasonic TVs now. (Not even Sears, which actually has a Kenmore line of HDTVs and even 4K TVs!)
According to the Reuters story, “The decision to close the (Himeji LCD TV panel) business comes after Panasonic scrapped a company-wide revenue target of 10 trillion yen ($90.1 billion) for the year through March 2019 to focus on profitability.” Based on what I found out, it would appear that the entire TV business in North America (if not elsewhere) is also at an end.
Ironically, I just received an invite from Panasonic’s PR agency to come see their new Blu-ray player (DMP-UB900) at the company’s corporate headquarters in a few weeks. So my question now becomes, “Why are you showing me an Ultra HD Blu-ray player when you don’t seem to have any Ultra HDTV models to go with it?”
Puzzling indeed, especially in light of the rapid move away from 1080p (Full HD) televisions to Ultra HD models that’s taking place all over the world! And you need no further proof than to go on the aforementioned big box store Web sites and take a gander at the selection of Full HD and Ultra HDTV models.
A quick search showed that Best Buy currently has 108 models of 2160p (Ultra HD) sets for sale, compared to 58 Full HD models and 27 720p models. The picture isn’t quite as clear at HH Gregg, as they show 133 “LED TVs” (presumably Full HD) and 78 Ultra HD models. And Fry’s shows two different categories for “4K TVs,” although those account for 173 models with Full HD showing 220 models.
So what to make of this? Simple – the adoption rate for Ultra HDTV sets is accelerating to the point where (at Best Buy, at least) the offerings now exceed those with Full HD resolution. Keep in mind that the first Ultra HDTVs appeared on our shores not quite four years ago, used the LG 84-inch IPS LCD panel, and cost anywhere between $15,000 and $20,000.
Now, you can buy a first-tier 55-inch Samsung Ultra HD “smart” LCD TV for $700. As I’m writing this, Vizio has a 50-inch “smart” 4K model for $499, as does Insignia. Westinghouse goes them one better with a 55-inch 4K set for the same price, and LG is clearing out a 49-inch Ultra HD set for $550. And Hisense recently announced HDR models for less than $600! Mind-boggling.
So here we go at warp speed; zooming into a new world of 4K TVs as Full HD sets fade into the distance, having first appeared a little over a decade ago. I’ve said it before and I’ll say it again – your next big screen LCD TV is going to be an Ultra HD model, especially if you pick it up in December, or wait a little longer into 2017.
And your new Ultra HDTV will NOT be a Panasonic model, based on what my Web search revealed. In fact, there’s a good chance your next Ultra HDTV could be a Chinese brand, like Hisense or TCL, thanks to their very aggressive pricing. (But make sure your set supports high dynamic range to be future-proof!)
Posted by Pete Putman, May 31, 2016 3:38 PM
About Pete PutmanPeter Putman is the president of ROAM Consulting L.L.C. His company provides training, marketing communications, and product testing/development services to manufacturers, dealers, and end-users of displays, display interfaces, and related products.
Pete edits and publishes HDTVexpert.com, a Web blog focused on digital TV, HDTV, and display technologies. He is also a columnist for Pro AV magazine, the leading trade publication for commercial AV systems integrators.