James Delahunty
24 May 2007 19:39
Matsushita Electric Industrial Co. and Hitachi Ltd. have decided to join forces against competition in the flat-panel TV market. Both companies will add each others' plasma display panels (PDP) to their product line-ups. Matsushita (Panasonic brand) will supply Hitachi with 103-inch panels in the current business year to March 2008, and Hitachi will Matsushita with 85-inch panels in the next business year.
Plasma makers took a hit when manufacturers of liquid-crystal display (LCD) TVs started rolling out larger screens at lower prices. Plasma TVs once dominated the 40-inch-and-larger market, but now plasma makers are being urged to keep closer ties to compete with LCD. Global LCD TV sales grew 54% from a year ago to $13.6 billion in the latest quarter, while plasma TV sales fell 9% to $3.6 billion.
Matsushita said that it is currently unclear how much annual revenues the new deal with Hitachi could generate. The move by both companies follows LG Electronics Inc. and Samsung Electronics Co. Ltd.'s formation of an alliance to enhance competitiveness.
Source:
Yahoo