Fujitsu Ditches Plasma TVs January 03, 2008

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Intense competition from LCD TVs and increasing price pressure have been cited by Fujitsu as the key reasons why it is pulling out of the consumer TV business.

The surprise announcement arrived just as Sony announced its retreat from the rear-projection TV arena. Fujitsu’s Plasmavision and Aviamo plasma TVs were aimed at the higher end of the home entertainment segment but from March 2008, Fujitsu will wash its hands of the consumer TV market. In a statement, the company – a pioneer in the plasma panel market – said:

“The focus of our marketing was high-end value added products, and our marketing direction was to concentrate on the Custom AV market specialising in advanced AV systems and high end custom installations in North America and the United Kingdom. During the past several years, the pricing and profitability of this segment has compressed beyond the point which our company could realise a satisfactory return on investment. We expect that this market situation will continue in the future.

In light of these conditions and the business structure of our company, we have decided that we will discontinue participation in the visual display business at the end of March, 2008 and concentrate our operating resources on our core business of heating and ventilation equipment instead.”

Although plasma TVs haven’t lost the battle to LCD TVs just yet, the shrinking number of plasma TV makers are finding it increasingly difficult to make any money. According to DisplaySearch, the average selling price for 42in plasma TVs fell 9% per quarter last year.-Martin Lynch

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