Pioneer To End TV Production

[Nolan B]

Sad day for people that appreciate high quality Plasma displays, and for people who have jobs associated with this.


I think im going to give my 141 a hug.

02/06 12:12P (DJ) DJ Pioneer To End TV Production, Spin Off DVD
Development-Nikkei
Story 6368 (6752.TO, 6753.TO, 6773.TO, PC, SHCAY, JP3359600008...)
TOKYO (Nikkei)--Pioneer Corp. (6773.TO) will pull the plug on its
loss-ridden television business and shift its DVD player operations to a new
venture with Sharp Corp. (6753.TO) in a sweeping overhaul, The Nikkei reported
in its Thursday morning edition.
The company had been planning to end in-house production of plasma panels by
the end of March and outfit its TVs with Panasonic Corp. (6752.TO) panels
instead. Faced with worsening profit margins, however, it has decided to end
TV development and production altogether.
Pioneer will idle its lone domestic TV factory in Shizuoka Prefecture
sometime this year. Factories in the U.S. and Europe are already slated for
closure.
Sales of Pioneer TVs will continue for the time being. The company has not
yet decided what to do when inventories run out.
Meanwhile, Pioneer will spin off its DVD player operations, which are
equally steeped in losses, to a new company to be set up with Sharp as early
as this spring.
The company plans to eliminate several thousand of its roughly 40,000
groupwide jobs in the year ending March 2010. Pioneer is likely to post a
consolidated net loss of more than Y100 billion for the year ending this
March, wider than the Y78 billion loss it forecast earlier.

[wettou]

Sad day for people that appreciate high quality Plasma
TOKYO (Nikkei)--Pioneer Corp. (6773.TO) will pull the plug on its loss-ridden television business and shift its DVD player operations to a new
venture with Sharp Corp. (6753.TO) in a sweeping overhaul, The Nikkei reported in its Thursday morning edition. The company had been planning to end in-house production of plasma panels by the end of March and outfit its TVs with Panasonic Corp. (6752.TO) panels instead. Faced with worsening profit margins, however, it has decided to end TV development and production altogether. Pioneer will idle its lone domestic TV factory in Shizuoka Prefecture sometime this year. Factories in the U.S. and Europe are already slated for closure. Sales of Pioneer TVs will continue for the time being. The company has not yet decided what to do when inventories run out. Meanwhile, Pioneer will spin off its DVD player operations, which are equally steeped in losses, to a new company to be set up with Sharp as early as this spring. The company plans to eliminate several thousand of its roughly 40,000 groupwide jobs in the year ending March 2010. Pioneer is likely to post a consolidated net loss of more than Y100 billion for the year ending this March, wider than the Y78 billion loss it forecast earlier.

Ouch that is really to bad we live in crazy times, this is unfortunately just the beginning, I think that many other firms are going to bite the dust....

But to be honest with companies like Vizio, Pioneer could not charge seven time the price and hope to remain competitive

I myself am waiting for OELD much nicer, true black and a lot more energy efficient, now all we need is the price to be $1000 for a 50inch OLED go Vizio.

I bought my first Pioneer Plasma 7 years ago and paid a truck load of cash......

[Nolan B]

Ouch that is really to bad we live in crazy times, this is unfortunately just the beginning, I think that many other firms are going to bite the dust....

But to be honest with companies like Vizio, Pioneer could not charge seven time the price and hope to remain competitive

I myself am waiting for OELD much nicer, true black and a lot more energy efficient, now all we need is the price to be $1000 for a 50inch OLED go Vizio.

I bought my first Pioneer Plasma 7 years ago and paid a truck load of cash......

I thnk you will be waiting a long time...personally with the quality of picture im getting from my 141 i am totally fine with waiting a long time

[wettou]

I thnk you will be waiting a long time...personally with the quality of picture im getting from my 141 i am totally fine with waiting a long time

I have a JVC DLA RS2 and Stewart Film Screen 2:35 128" screen so I am ok for a while :B

I still want an OLED screen when they come out in size larger than the 11"

[KahunaCanuck]

This is a sad day...I have the 141 in my bedroom and the JVC RS2 in my theater, and while the theater is a great experience, the Pio is mesmerizing...very sad.

We live in a mp3 society now where people by cheap over best quality...then throw them away.

[audioqueso]

Interesting. The company that was in first place with all plasmas is now out of that race.

[littlesaint]

This is a sad day...I have the 141 in my bedroom and the JVC RS2 in my theater, and while the theater is a great experience, the Pio is mesmerizing...very sad.

We live in a mp3 society now where people by cheap over best quality...then throw them away.

That's a little unfair. I don't see how you can blame the consumer because they can't see spending $3000+ for a Pioneer when there's much cheaper and in some cases (Panasonic) you don't lose all that much. People are going to buy the best they can afford, and the writing has been on the wall for some time now that people can't afford $3000+ displays.

[KahunaCanuck]

I don't think it's a matter of people not being able to afford, it's that they choose not to. The world of ipods, downloaded music, and downloaded movies is what most people see as normal now, thats why blu ray is having a tough time, and why Pioneer is no longer going to be in the TV game. People can "afford" a $15 cd, but they chose a $10 download (or free if they chose not to pay)of the same album and think it is fine.

[impala454]

I think the problem is that plasma got a bad rap (whether that was justified or not doesn't really matter). Pioneer had all their eggs in one TV basket with plasma and plasma sales in general have not done well.

[wettou]

Interesting. The company that was in first place with all plasmas is now out of that race.

Competitive pricing will do that to anyone, if people don't perceive the value then your are out of business, I believe a lot of High End companies are going to go out of business unless they adapt.

It seems Krell is adapting with the S300i

[littlesaint]

I don't think it's a matter of people not being able to afford, it's that they choose not to. The world of ipods, downloaded music, and downloaded movies is what most people see as normal now, thats why blu ray is having a tough time, and why Pioneer is no longer going to be in the TV game. People can "afford" a $15 cd, but they chose a $10 download (or free if they chose not to pay)of the same album and think it is fine.

So you're going to compare spending $15 for a CD to $3000 for a TV. 8O If you have the income to choose the best regardless of cost, ;x( , but in case you haven't been reading the news for the last year, most people do not, and a large contributer to current economic struggles is people spending beyond their means.

[btf1980]

I don't think it's a matter of people not being able to afford, it's that they choose not to. The world of ipods, downloaded music, and downloaded movies is what most people see as normal now, thats why blu ray is having a tough time, and why Pioneer is no longer going to be in the TV game. People can "afford" a $15 cd, but they chose a $10 download (or free if they chose not to pay)of the same album and think it is fine.

A completely asinine comparison. I've been seeing posts like this on various forums, and I have to wonder whether you're on planet earth. We are in a deep recession, the global economy is collapsing, jobless rates are the highest they have been since the great depression, then we wonder why $3K + televisions are not selling.

For the record, I am a kuro owner. However, that does not blind me to the fact that they are completely out of reach to the average person who is more concerned about paying the mortgage and putting food on the table for their family.

Quite frankly, we are in this economic situation because people who could not afford luxury items, bought it anyway. So, I would prefer it if people lived within their means, which unfortunately does not include a kuro for joe six pack. C'est la vie.

[btf1980]

I think the problem is that plasma got a bad rap (whether that was justified or not doesn't really matter). Pioneer had all their eggs in one TV basket with plasma and plasma sales in general have not done well.

That's not true at all. All their eggs are not in one basket. Pioneer does extremely well with car audio and audio equipment (non hifi) in general.

Pioneer isn't going away, just their plasma production.

[KahunaCanuck]

A completely asinine comparison. I've been seeing posts like this on various forums, and I have to wonder whether you're on planet earth. We are in a deep recession, the global economy is collapsing, jobless rates are the highest they have been since the great depression, then we wonder why $3K + televisions are not selling.

For the record, I am a kuro owner. However, that does not blind me to the fact that they are completely out of reach to the average person who is more concerned about paying the mortgage and putting food on the table for their family.

Quite frankly, we are in this economic situation because people who could not afford luxury items, bought it anyway. So, I would prefer it if people lived within their means, which unfortunately does not include a kuro for joe six pack. C'est la vie.

So based on yoru comments now we should all buy the cheapest Kia?

I was not trying to compare the purchase of an expensive TV to a CD. I wasn't getting into a discussion on why we are in a recession right now. Only trying to point out that assuming one has the available funds to make a smart purchase for a new TV, that people seem to be choosing cheaper over better...and that started before this recession did.

I think Impala is right that Plasma got a bad rap, people still think they wear out faster than LCDs etc., and Pioneer didn't do itself any favours with their marketing program.

[audioqueso]

Competitive pricing will do that to anyone, if people don't perceive the value then your are out of business, I believe a lot of High End companies are going to go out of business unless they adapt.

It seems Krell is adapting with the S300i

...or most likely the bad economy.

[btf1980]

So based on yoru comments now we should all buy the cheapest Kia?

I didn't say that. However, when the best (up until a few weeks ago before the huge price drops) is 4 times the price of the rest, then yes most people will buy cheaper.

Why don't you ask why most people don't have a pair of 800D's while you're at it.

The people who can afford such things are few and far between. Forums like this have jaded us to think that we are the norm, when in fact we make up an inconsequential number when you look at consumers as a whole. Joe six pack is not buying kuros, nor did he ever plan on buying it. He shops at Walmart where Vizio is displayed. Compared to his clunker CRT from 1985, that is a huge improvement for him.

Even hifi shops are feeling the pinch, and they cater to enthusiasts that know better.

We need to come back down to reality and realize that most people just don't look at things the way we do, nor do they value it the way we do.

[Alaric]

So, I would prefer it if people lived within their means, which unfortunately does not include a kuro for joe six pack. C'est la vie.

Yeah! How dare an American (Joe Six-Pack) think he can do better! What kind of ninny thinks he can improve his lot in life? We should be grateful we're allowed to be poor.

While I agree with what I think btf1980 is trying to say , the above is my response to the way it came across.

[btf1980]

Yeah! How dare an American (Joe Six-Pack) think he can do better! What kind of ninny thinks he can improve his lot in life? We should be grateful we're allowed to be poor.

While I agree with what I think btf1980 is trying to say , the above is my response to the way it came across.

C'mon you know what I'm trying to say!

Increasing your lot in life comes from saving your money, not buying fancy televisions. I certainly hope people don't think that buying expensive televisions automatically makes them the upper crust of society. That would be sad.

[aud19]

Striving for and working towards a better life are VERY different from living beyond your means which has become an epidemic in North America. And "better" possessions don't necessarily lead to a better life either.

Kuro's and 800D's are unfortunately beyond the means (or for that matter significance) to the average person. That does not mean they shouldn't strive for them though if they so choose.

[KeithM]

I'll probably never be able to afford a Kuro, but it's always sad to see eye candy go away.

[wettou]

C'mon you know what I'm trying to say!

Increasing your lot in life comes from saving your money, not buying fancy televisions. I certainly hope people don't think that buying expensive televisions automatically makes them the upper crust of society. That would be sad.

I don't think anyone is saying that people fancy clothes, other cars, some watches or pens or jewelry other electronics...

It all depends what one likes rather than how much you pay for it :B

[Alaric]

C'mon you know what I'm trying to say!

Increasing your lot in life comes from saving your money, not buying fancy televisions. I certainly hope people don't think that buying expensive televisions automatically makes them the upper crust of society. That would be sad.

:yesnod: :yesnod: :yesnod: Yup. I agree with you 100%. It just sounded kind of harsh! Unfortunately , new toys are the benchmark for a lot of folks. Hell , I want some new toys , myself.....

[whoaru99]

Keeping up with the Joneses isn't a mindset that just came about recently.

[Nolan B]

Looks like this all could be a rumor. Pioneer is making an official announcement Wd evening.

[Smokinghot]

Guys.. it had nothing to do with sales. Pioneer reported their last quarters profits were the best they have had in some time.

Pioneer decided last year to stop producing their own glass, and instead purchase it from panasonic to reduce costs. Panasonic just recently (due to economy) announced that they would be closing facilities that produced their surplus glass. With the uncertainity of manufacturing material Pioneer simply opted to discontinue the line.

Fortunately, the Kuro tech was on of the things Pioneer shared with panasonic, so all may not be lost.

[Nolan B]

Its not just the expensive guys leaving plasma.

http://gadgetwise.blogs.nytimes.com/2009/02/11/another-manufacturer-drops-plasma/

[wettou]

Guys.. it had nothing to do with sales. Pioneer reported their last quarters profits were the best they have had in some time.

I am not sure where you heard that?

"Pioneer is projecting a net loss of 78 billion yen ($848.6 million) for the year ending March 31, its fifth consecutive year of annual loss, and stopping the flow of red ink in its TV operations is high on the company's list of priorities."

http://www.google.com/finance?q=TYO:6773

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUST13864720090207

"Pioneer will no longer manufacture televisions and plans to spin off its DVD player business into a joint venture with Sharp, according to a report in Japan's Nikkei newspaper.

The company is reportedly exiting the TV business rather than continue to incur losses in that division. This latest report comes a few months after Pioneer announced it anticipated huge losses at the end of its fiscal year in March and plans to lay off 2,000 workers."

Pioneer had built itself into a widely respected maker of plasma televisions, but last March said it would not make the plasma panels anymore because of sky-rocketing costs and mounting losses in its TV division. It tapped Panasonic to provide the panels instead, but that deal appears now short-lived. Another clue this was coming: Pioneer showed no specific models of TVs at the giant Consumer Electronics Show in Las Vegas last month.

Pioneer is not alone among TV makers losing money. Everyone from Panasonic to Samsung to Sony is facing layoffs and large quarterly losses.

[Kevin D]

From Pioneer US Corporate yesterday:

There is a lot of buzz out there regarding a news item that was published last week in a Japanese business paper, which was picked up by The Wall Street Journal, the AP, and now some of the trade press. The headlines of the article are hyping some rather dry information, and it is creating some concerns out there. If one actually reads the article, and strips out the opinion, one will see that there is really not any substance to it.

The Japanese article attributed an inside sourceat Pioneer HQ saying the company was considering withdrawing from the flat panel television category as part of a complete review of its total business, and continuing with its other profitable categories like mobile audio and DVD component drives.

This is total speculation in this article, and has no factual basis from announcements from the company. Do not be a part of the rumor mill. These are the facts:

Pioneer has not made any official announcement regarding their future in flat panel since last January’s announcement of their partnership with Panasonic.
Companies routinely consider a variety of options in planning their businesses, and weigh the consequences of each path. This is not news.
Any outside speculation of the real issue beyond the actual anonymous statement is nothing but pure conjecture by the press.
Pioneer US will have an official comment on this article within the next 48 hours.

We will relay additional news or facts as we get them from Pioneer. In the meantime, please avoid giving any credence to the speculation in this article, one way or the other.

[Smokinghot]

I am not sure where you heard that?

"Pioneer is projecting a net loss of 78 billion yen ($848.6 million) for the year ending March 31, its fifth consecutive year of annual loss, and stopping the flow of red ink in its TV operations is high on the company's list of priorities."

I was speaking of pioneer's panel divison, not the company as a whole.

The company is reportedly exiting the TV business rather than continue to incur losses in that division. This latest report comes a few months after Pioneer announced it anticipated huge losses at the end of its fiscal year in March and plans to lay off 2,000 workers."

Pioneer had built itself into a widely respected maker of plasma televisions, but last March said it would not make the plasma panels anymore because of sky-rocketing costs and mounting losses in its TV division. It tapped Panasonic to provide the panels instead, but that deal appears now short-lived.

I have zero interest in arguing this with you. But thanks for proving my point on why they discontinued production entirely. It had nothing to do with market but a loss of material due to panasonic's manufacturering production.

[Nolan B]

Its official, from the press release.


1) Home Electronics Business
Pioneer will terminate any further in-house display product development after its
products currently available on the market, and withdraw from the display business
by March 2010. Recent market conditions have changed far more than initially
anticipated, and Pioneer has decided to withdraw from the display business after
concluding that there are no prospects for improving profitability under current
conditions. However, the Company will continue to provide after-sales services even
after the withdrawal.