Panasonic has said it expects its display unit to return to profits during the January-March quarter, the first time in five years. This triumph is credited to an increase in sales of LCD panels for computers and, more significantly, tablet devices. As Panasonic will continue to suffer major overall losses for the rest of the fiscal year, the Japanese manufacturer has wised up and started to withdraw from its bleeding TV production.
The sales of Panasonic’s LCD panels are expected to account for 60% of the sales within the display division in second half of the fiscal year, whereas in the first half they only made up 30%. Yoshio Ito, Panasonic’s senior vice president, says the company is now producing the screens for more than 10 different models of tablets and computers. As further evidence of their shift away from televisions, they’ve turned their TV manufacturing plant into a research and development unit.
Panasonic says its LCD display division has fared the best from the company’s restructuring plans. The progress is expected to continue as the popularity around the globe of mobile devices such as smartphones and tablets is only growing, as is the decline in profitability from TVs. Over two weeks ago Panasonic released its earning records, which included the estimate that the fiscal year will end with $9.6 billion in losses. Then, just yesterday, they revealed another 10,000 job cuts between now and March in order to eliminate any unnecessary costs.
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