Panasonic's TV Business: A Turning Point?
In January, reports surfaced that Panasonic Holdings Corporation of Japan planned to dissolve its subsidiary, Panasonic Appliances, responsible for home appliance production and sales. Additionally, its TV business was reportedly up for sale. This signaled the potential end of Panasonic TVs, once a global benchmark in the color TV industry.
However, on February 6, Panasonic clarified that the reports about "selling or exiting the TV business" were misleading. The company stated that it is "considering all possibilities" regarding the future of its TV operations and has not made any decisions yet. While this announcement walked back earlier media speculation, it also confirmed that a significant shift is underway.
Some analysts believe this latest statement could be a strategic negotiation tactic. According to Omdia research data, Panasonic's TV sales have consistently failed to rank in the global top 10 in recent years, making it a relatively marginal brand. AVC Revo data shows that in 2024, Panasonic sold 2.02 million TVs globally, capturing only 1.0% of the market share.
The Fall of a Legend
Panasonic TVs were once a symbol of Japanese manufacturing and innovation. At its peak, Panasonic led the world in CRT display technology. In the 1990s, its CRT TVs held a 20% market share in China, rivaling Sony as one of the top two CRT brands.
Entering the 21st century, Panasonic pioneered large-scale plasma display technology, becoming a leading brand in PDP TVs alongside Sharp, the "father of LCD." In 2007, Panasonic's TV sales reached ¥1 trillion ($9.1 billion), dominating the large-size plasma TV market.
However, as LCD TVs continued to advance in size and thinness, plasma technology stagnated. Market demand shifted toward LCD, and Panasonic missed the wave of flat-panel TV adoption. Although Panasonic later invested in Japan's LCD panel manufacturing, it faced challenges such as being too late to the game and high production costs, ultimately exiting the market in 2016.
Today, annual sales of just over 2 million units can no longer sustain Panasonic's global TV operations. Even if the company doesn't completely exit the TV business, a global retrenchment seems inevitable. Without sufficient sales volume, Panasonic's R&D investments in areas like large-size TVs, Mini LED, and AI-powered TVs have lagged behind industry leaders.
Poor Timing for a Sale
Panasonic's TV business has lost much of its global influence. An industry insider noted that this makes it both necessary and difficult for Panasonic to offload its TV operations.
While divesting the TV business aligns with Panasonic's broader transformation strategy, the small scale of the operation limits its appeal to potential buyers. Even in Japan, Panasonic's TV market position has weakened. The Japanese TV market is now dominated by Sony and Sharp, with Toshiba under Hisense's umbrella. According to BCN's 2024 report, Hisense's REGZA leads with a 25.4% market share, followed by Sharp at 20.6%, Hisense at 15.7%, TCL at 9.7%, Sony at 9.6%, and Panasonic at 8.8%.
Failing to crack the top five in its home market means Panasonic lacks strong bargaining power in any potential sale. From a buyer's perspective, Panasonic's brand value, market share, and technological assets are limited. Even for those looking to expand in Japan, Panasonic's 8.8% share isn't a highly attractive asset.
Moreover, the era of acquiring Japanese or global TV brands to quickly scale up and access distribution channels has passed. Future industry players, including emerging ones, are more likely to focus on upgrading their own brands. For Panasonic, the window for a favorable sale has likely closed.
Additionally, if Panasonic exits the TV market, Sony could emerge as the primary beneficiary. From a consumer perspective, Sony is seen as a strong alternative to Panasonic, adding another layer of risk for potential buyers.
The Collapse of Japan's Display Industry
Where did Panasonic go wrong? Many attribute its struggles to betting on the wrong technology—PDP. However, this is only part of the story.
In 2024, Japan's display industry faced another major blow: the shutdown of Sharp's last large-size panel production line, the 10th-generation line. Simultaneously, Sharp expanded its 10.5/11th-generation line capacity in Guangzhou, China—a clear sign of production relocation.
In 2023, JOLED, Japan's last OLED display manufacturer, ceased operations and was acquired by TCL CSOT. Meanwhile, Japan Display Inc. (JDI) explored a partnership with Wuhu, China, to build an OLED production line, though the plan ultimately fell through.
From PDP to LCD (pioneered by Sharp) and OLED (with Sony planning small-size OLED TVs as early as 2005), Japan's display industry has always been at the forefront of technological innovation. However, this leadership came at a cost.
In the early 2000s, Panasonic and Sharp led the LCD vs. plasma debate, while Sony and Canon pursued OLED and SED technologies, respectively. Meanwhile, Taiwanese and South Korean companies focused on LCD, and later, Chinese mainland companies followed suit. By concentrating resources on a single technology, these regions achieved economies of scale and long-tail value.
"Internal competition and fragmented investments, combined with Japan's high manufacturing costs, led to a rapid loss in the scale-driven industry battle," some analysts argue. Japan's TV industry, including Panasonic, failed due to long-term policy and coordination issues. The modern display industry relies on scale, concentrated manufacturing clusters, and streamlined supply chains. Japan's internal competition across different technologies and factions drained not only financial and human resources but also precious time.
For example, Nippon Electric Glass and Corning, the world's largest suppliers of display-grade glass, have concentrated their major production capacities and large factories in mainland China. This reflects the industry's shift toward scale and cluster-based development, driven by China's strong industrial policies and supply chain organization. In essence, Japan's display industry hasn't disappeared—it has simply relocated, with Sharp's Guangzhou 10.5th-generation line being a prime example.
A New Chapter for Panasonic
Panasonic's TV business is inevitably fading into history, not just due to its own operational challenges but also because of its inability to integrate into the evolving display industry ecosystem. The decline and relocation of Japan's display supply chain, coupled with Panasonic's missed opportunities to join Taiwanese or mainland Chinese supply chains, are deeper reasons for its current predicament.
"Out with the old, in with the new!" This is how industry insiders describe Panasonic's shift away from home appliances. By focusing on "solution-based fields," as well as its profitable "equipment sector" (e.g., power batteries) and "smart living" initiatives, Panasonic is aligning itself with the realities of the modern industrial ecosystem. This strategic pivot could lay the foundation for the company's rebirth.
In January, reports surfaced that Panasonic Holdings Corporation of Japan planned to dissolve its subsidiary, Panasonic Appliances, responsible for home appliance production and sales. Additionally, its TV business was reportedly up for sale. This signaled the potential end of Panasonic TVs, once a global benchmark in the color TV industry.
However, on February 6, Panasonic clarified that the reports about "selling or exiting the TV business" were misleading. The company stated that it is "considering all possibilities" regarding the future of its TV operations and has not made any decisions yet. While this announcement walked back earlier media speculation, it also confirmed that a significant shift is underway.
Some analysts believe this latest statement could be a strategic negotiation tactic. According to Omdia research data, Panasonic's TV sales have consistently failed to rank in the global top 10 in recent years, making it a relatively marginal brand. AVC Revo data shows that in 2024, Panasonic sold 2.02 million TVs globally, capturing only 1.0% of the market share.
The Fall of a Legend
Panasonic TVs were once a symbol of Japanese manufacturing and innovation. At its peak, Panasonic led the world in CRT display technology. In the 1990s, its CRT TVs held a 20% market share in China, rivaling Sony as one of the top two CRT brands.
Entering the 21st century, Panasonic pioneered large-scale plasma display technology, becoming a leading brand in PDP TVs alongside Sharp, the "father of LCD." In 2007, Panasonic's TV sales reached ¥1 trillion ($9.1 billion), dominating the large-size plasma TV market.
However, as LCD TVs continued to advance in size and thinness, plasma technology stagnated. Market demand shifted toward LCD, and Panasonic missed the wave of flat-panel TV adoption. Although Panasonic later invested in Japan's LCD panel manufacturing, it faced challenges such as being too late to the game and high production costs, ultimately exiting the market in 2016.
Today, annual sales of just over 2 million units can no longer sustain Panasonic's global TV operations. Even if the company doesn't completely exit the TV business, a global retrenchment seems inevitable. Without sufficient sales volume, Panasonic's R&D investments in areas like large-size TVs, Mini LED, and AI-powered TVs have lagged behind industry leaders.
Poor Timing for a Sale
Panasonic's TV business has lost much of its global influence. An industry insider noted that this makes it both necessary and difficult for Panasonic to offload its TV operations.
While divesting the TV business aligns with Panasonic's broader transformation strategy, the small scale of the operation limits its appeal to potential buyers. Even in Japan, Panasonic's TV market position has weakened. The Japanese TV market is now dominated by Sony and Sharp, with Toshiba under Hisense's umbrella. According to BCN's 2024 report, Hisense's REGZA leads with a 25.4% market share, followed by Sharp at 20.6%, Hisense at 15.7%, TCL at 9.7%, Sony at 9.6%, and Panasonic at 8.8%.
Failing to crack the top five in its home market means Panasonic lacks strong bargaining power in any potential sale. From a buyer's perspective, Panasonic's brand value, market share, and technological assets are limited. Even for those looking to expand in Japan, Panasonic's 8.8% share isn't a highly attractive asset.
Moreover, the era of acquiring Japanese or global TV brands to quickly scale up and access distribution channels has passed. Future industry players, including emerging ones, are more likely to focus on upgrading their own brands. For Panasonic, the window for a favorable sale has likely closed.
Additionally, if Panasonic exits the TV market, Sony could emerge as the primary beneficiary. From a consumer perspective, Sony is seen as a strong alternative to Panasonic, adding another layer of risk for potential buyers.
The Collapse of Japan's Display Industry
Where did Panasonic go wrong? Many attribute its struggles to betting on the wrong technology—PDP. However, this is only part of the story.
In 2024, Japan's display industry faced another major blow: the shutdown of Sharp's last large-size panel production line, the 10th-generation line. Simultaneously, Sharp expanded its 10.5/11th-generation line capacity in Guangzhou, China—a clear sign of production relocation.
In 2023, JOLED, Japan's last OLED display manufacturer, ceased operations and was acquired by TCL CSOT. Meanwhile, Japan Display Inc. (JDI) explored a partnership with Wuhu, China, to build an OLED production line, though the plan ultimately fell through.
From PDP to LCD (pioneered by Sharp) and OLED (with Sony planning small-size OLED TVs as early as 2005), Japan's display industry has always been at the forefront of technological innovation. However, this leadership came at a cost.
In the early 2000s, Panasonic and Sharp led the LCD vs. plasma debate, while Sony and Canon pursued OLED and SED technologies, respectively. Meanwhile, Taiwanese and South Korean companies focused on LCD, and later, Chinese mainland companies followed suit. By concentrating resources on a single technology, these regions achieved economies of scale and long-tail value.
"Internal competition and fragmented investments, combined with Japan's high manufacturing costs, led to a rapid loss in the scale-driven industry battle," some analysts argue. Japan's TV industry, including Panasonic, failed due to long-term policy and coordination issues. The modern display industry relies on scale, concentrated manufacturing clusters, and streamlined supply chains. Japan's internal competition across different technologies and factions drained not only financial and human resources but also precious time.
For example, Nippon Electric Glass and Corning, the world's largest suppliers of display-grade glass, have concentrated their major production capacities and large factories in mainland China. This reflects the industry's shift toward scale and cluster-based development, driven by China's strong industrial policies and supply chain organization. In essence, Japan's display industry hasn't disappeared—it has simply relocated, with Sharp's Guangzhou 10.5th-generation line being a prime example.
A New Chapter for Panasonic
Panasonic's TV business is inevitably fading into history, not just due to its own operational challenges but also because of its inability to integrate into the evolving display industry ecosystem. The decline and relocation of Japan's display supply chain, coupled with Panasonic's missed opportunities to join Taiwanese or mainland Chinese supply chains, are deeper reasons for its current predicament.
"Out with the old, in with the new!" This is how industry insiders describe Panasonic's shift away from home appliances. By focusing on "solution-based fields," as well as its profitable "equipment sector" (e.g., power batteries) and "smart living" initiatives, Panasonic is aligning itself with the realities of the modern industrial ecosystem. This strategic pivot could lay the foundation for the company's rebirth.
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