JAPAN: Sharp to go dutch with Philips in LCD TVs
There's been a lot of talk about Sony palling up with Sharp to make LCD TVs as part of the former's gameplan to put its TV business back in the black, but now Sharp has announced a deal to supply LCD TV panels to Philips factories in Europe and South America.
Sharp will make the panels at its state of the art new plant in Sakai, Japan, which opened a couple of months ago. The plant, which has been widely tipped to be the location of a future joint venture with Sony, handles tenth-generation glass substrates, currently the largest used in mass-production.
The plan is that Sharp's factory in Poland will turn the LCD panels into part-finished products, which will then be shipped to Philips' factory in the same country for final assembly.
It's thought that Sharp may later consider making finished TVs for Philips in its Polish factory.
The deal should suit both parties very well: Sharp is keen to recoup its huge investment in the Sakai plant, as well as turning round its loss-making TV business, while Philips is striving to break even in TVs after some difficult times of late.
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I think this partnership will become profitable for both parties. I work with Sharp and this venture should improve sales of their <a href="http://www.sharpusa.com/ForHome/HomeEntertainment/LCDTVs.aspx">LCD TVs</a>.
I think that's just one small market for Philips. The company is traditionally stronger in mainland Europe, although there are signs the Korean rivals are even challenging that position.
Not surprised Philips' TV division is in trouble seeing as they have virtually zero High Street presence. Argos, John Lewis, oh, and Tesco... that's about your lot. Great TV's but they hardly showcase them.