Panasonic outsources television production to Chinese partner

Plasma and LCD pioneer steps away from manufacturing but product develop will be unaffected

Trade

Image: Panasonic

Panasonic is ceasing production of its own TVs and will henceforth have its televisions made by Chinese company Shenzhen Skyworth. The Japanese electronics brand is taking a striking strategic step to bolster its competitive position in the global flatscreen market. The transition starts on 1 April and will initially apply to the European and American markets.

For decades, Panasonic was regarded as an authority in plasma and LCD screens. The decision to hand over production may look like a step backwards, but it follows a broader trend within the sector. Rival Sony, for instance, has long had its Bravia line assembled by Chinese group TCL. Panasonic will, however, remain responsible for technological development and for customer service after purchase.

The partnership offers economies of scale, as Skyworth sources its OLED panels from market leader LG. By outsourcing, the Japanese brand hopes to win back market share in a segment now dominated by low-cost operators and heavyweight technology players.

Despite the shift in its production process, Panasonic is unveiling several new models for the current year. The Z95B and Z90B remain the flagships, joined by the new Z85C, which features an updated OLED panel. The W97C and W95C lead the mini-LED segment with 1,000 local dimming zones and a brightness of 1,500 nits. The new screens use Glare Free Technology to eliminate distracting reflections, while refresh rates of 144 Hz optimise gaming performance.

Panasonic’s move does not stand alone. Competitors such as Sony and Sharp have already taken similar steps by outsourcing their production to external parties such as TCL. As a result, South Korean and Chinese manufacturers now control virtually the entire global market for modern televisions. Skyworth, which ranks itself among the world’s top three suppliers of Android TV sets, is aiming for a double-digit market share in the West by leveraging the Panasonic name.

Business AM

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