The move comes after the company's plasma operations reported a second quarter loss blamed on intense competition among flat panel televisions. Plasma televisions have been losing market share to LCD models.
Pioneer's new 50- and 60-inch full high-definition sets, featuring an ability to recreate deeper black than conventional models, are expected to sell for 720,000 yen ($6,060) and 990,000 yen ($8,340) in Japan.
Matsushita, the current leader in plasma sales, has 50-inch full high-definition plasma TVs selling for around 450,000 yen.
"We are determined to distance ourselves from price competition and move on to a new stage to offer an exciting experience for our customers," Pioneer Managing Director Shinji Yasuda told a news conference.
Despite prices for upcoming plasma displays being high in comparison to LCD televisions, which seem to be gaining market share every day, Pioneer still plans to ship over 700,000 plasma TVs displays in the next business year, which ends next March.
At least one reason for Japanese manufacturers to stay firmly behind plasma is the lower margins available with other technologies. Much like their rise to dominance in the 1970s and 1980s because of lower production costs, they're finding it increasingly difficult to compete with Korean, and now Chinese companies.
Source: Reuters
Written by: Rich Fiscus @ 2 Aug 2007 8:32
