Panasonic Drops Plasma

Panasonic has announced it will discontinue production of plasma display panels (PDP) next month and close three factories that were building the HDTVs.

The company will stop selling plasma TVs for consumer use and PDP-related products for commercial use, such as Interactive Plasma Displays, with the current line of TVs. It expects to stop business operations at three of its display plants — the Amagasaki P3 Factory, the Amagasaki P5 Factory and the Amagasaki P4 Factory — by the end of March 2014.

Samsung and LG continue to produce plasma display televisions, but theirs are lower-end or entry-level models; they have generally put development dollars into LCD TVs, according to Paul Gray, a research analyst with NPD DisplaySearch.

“Samsung and [LG] were at best uncommitted to PDP,” Gray said in a blog post. And as for Panasonic, Gray said its “PDP research team had to counter every move in LCD and translate it to their technology…. Inevitably, they slowly lost ground.”

Since 2000, Panasonic has been the leading PDP maker. It led the global flat-panel display market by using PDP for large displays and LCD screens for small- and medium-sized displays. Only three years ago, Panasonic claimed 40% of the plasma display market.

In 2010, plasmaaccounted for 40% of flat panel TVs; this year, PDPs are expected to represent only 5% of the flat-panel market, according to according to market research firm NPD DisplaySearch.

Over the past two years, Panasonic has lost $15 billion through investments in flat-panel TV production, according to financial reports.

Plasma displays have increasingly lost market share to LCD TVs as they moved to LED backlights that narrowed the performance gap between the two technologies.

“With the rapid development of large-screen LCDs, and facing the severe price competition in the global market brought on by the Lehman Shock in September 2008, the company consolidated production in the Amagasaki P4 Factory, made a shift towards commercial applications and worked to improve the earnings of the business,” Panasonic said in a recent statement.

Panasonic will now focus its attention on “non-TV applications” and is moving to reduce its fixed costs for production of both plasma and LCD panels.

The move away from plasma HDTVs is reminiscent of the video tape wars of the 1970s and 1980s.

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Artificial Photosynthesis Developed

Panasonic said on Monday it has created a new system for artificial photosynthesis that can remove carbon dioxide from the air almost as well as plants do, as part of the company’s entry into an industry-wide trend toward greener tech.

The company said its system uses nitride semiconductors, which are widely used in LEDs (light-emitting diodes) to convert light to energy, and a metal catalyst to convert carbon dioxide and water to formic acid, which is widely used in dyes, leather production and as a preservative.

Carbon dioxide is a major pollutant and considered to be a main cause of the “greenhouse effect,” which most climate scientists believe causes global warming.

Panasonic has struggled with its traditional electronics business and has made eco-friendly products and practices the key element in its turnaround plan. The company is hoping to leverage its large rechargeable battery and solar businesses, while joining the industry in embracing technologies that are friendlier to the environment. The issue is an important one with customers, as demonstrated by the the outcry earlier this month when Apple was forced to rejoin a green standards program when clients complained about its earlier withdrawal.

Panasonic said the system can convert carbon dioxide and water to formic acid with an efficiency of 0.2 percent in laboratory conditions, which is similar to the conversion rate for green plants. The efficiency refers to the portion of the incoming light energy stored in materials produced during the process.

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Samsung Plans To Go Low-End

Samsung Electronics Co, the world’s top television maker, has seen TV sales firming up so far this year and plans to launch cheaper TVs, as demand for lower-end models increase, the head of its TV business said on Wednesday.

Demand for lower-end TVs has been increasing in recent months as major South Korean retailers such as E-Mart Co introduced flat-screen models that are as much as 40 percent cheaper through alliances with small local manufacturers.

“As long as there’s demand, we’re open to get into that segment,” Kim Hyun-suk, executive vice president of Samsung’s visual display division, told reporters.

“We’ve been preparing to introduce cheap models and have been studying to optimize production costs and retail prices. Those (cheap) models will be ready for sale in one or two months.”

Samsung, the most profitable TV maker, also introduced on Wednesday its highest-end premium set that it hopes will help boost profitability, as a fragile global economy threatens to sap demand growth this year after no growth in 2010.

The ES8000 model has voice, motion and face recognition functions, as well as 3D and Internet-enabled capabilities. The models, available in sizes of between 46 and 65 inches, will go on sale from this weekend in South Korea before a global launch in March.

Kim said Samsung’s TV sales so far this year have been stronger than a year ago and demand from China remained solid.

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