NEWS: Pioneer confirms it'll stop making its own plasma displays - but it's not going downmarket

In a statement made today in Japan, Pioneer has confirmed it's to cease in-house manufacture of plasma displays - but the company says it's not changing its policy of aiming for the upper end of the home TV market.
And it will be making one more series of self-built plasma screens - those due for launch this year.
The statement says that: "we have judged that maintaining the cost competitiveness of plasma display panels at projected sales volumes will be difficult going forward.
"Accordingly, we have decided to terminate in-house plasma display panel production and to procure these panels externally, after panel production for our next series of models is complete."
While the company says it will be launching LCD screens in Europe in the second half of this year, that doesn't mean Pioneer is abandoning its plans to cater for the upper end of the home display market with its Kuro brand.
The statement says it will "maintain its fundamental strategy for the display business—supply premium models with high picture and sound quality befitting the image of its brands at prices matching their added value."
Talking about its much-reported alliance with Sharp, Pioneer says it will:
- Develop super-thin speakers for Sharp products
- Develop LCD TVs that carry on the legacy of the Pioneer “KURO” series in terms of high picture and sound quality
- And work together with Sharp to develop the Blu-ray related businesses of both companies.
In fact, Blu-ray will play a major part in Pioneer's future plans. It says it plans to "concentrate internal product development on Blu-ray Disc players, which are expected to find growing adoption worldwide. Meanwhile, we will use joint development and outsourcing to enhance our lineup of Blu-ray Disc recorders and other products."
And where will Pioneer's new plasma display panels come from? Panasonic. as has been widely suggested? The company says only that it is "currently in discussions on the feasibility of procuring panel modules that may incorporate the Company's proprietary technologies. Details will be announced as soon as they are finalized."
- Andrew Everard's blog
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I'm not sure it's about lower prices, piopaul - the announcement seems to be more about making the TVs viable to make and sell in economic terms, and Pioneer specifically refers to "prices matching their added value".
At last we have the business plan ! (we have judged
maintaining the cost competitveness of plasma display panels .......difficult ..quote.. see statement).My question is Why? ...What hifi and others have said that the extra cost is worth the purchase .Never mind the price see the quality. Pioneer in my mind failed to see and judge correctly the product most of us want ! Quality at a fair price !
Now I'm in a dilemma...should I wait for Pioneer's new models (which will surely produce full 1080p HD), or go for the 428XD now? Any idea when they are looking to launch the 'final' range?
So does this mean that Pioneer intend to still have Plasma sets but made externally by a third party but with Pioneer firmware to drive them say in the same way Sony used Samsung LCD panels?
That seems the plan. I can see Pioneer become the premium brand with Panasonic the mass-market one - kind of a VW/Audi thang.
I think this is a quite pragmatic decision.
It would cost Pioneer a fortune to continue churning out panels at such low volumes, pushing prices even higher. At least now they'll be able to produce the panels for an acceptable price and couple them with their higher grade electronics to produce first class TV's.
so they will be using sharp lcd panel and panasonic panels coupled with their own electronics so the price will drop lets hope their quaility does not diminish,but will they be as good as kuro it might be worth buying when the last batch arrive later this year.