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Panasonic Could Miss 3D TV Sales Target After Price War (PC)

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Panasonic Corporation (NYSE: PC) said it could miss 3D television sales targets after an "unexpected" pricing war with Samsung Electronics Co.

"No one can keep up" with price cuts by Samsung in the world’s biggest TV market, Yoshiiku Miyata, a managing executive officer at Osaka-based Panasonic’s TV business, said in an August 30 interview with Bloomberg. "It’s become unclear whether we can reach our target" of selling one million 3-D sets in the year to March 31, he said.

According to a Bloomberg report, "The maker of Viera TVs joins Sony Corp. in saying the Japanese manufacturers are struggling to sell the new product in the U.S. Prices of 3-D sets are falling faster than anticipated, Yoshihisa Ishida, who heads Sony’s home-entertainment business said last week."

Panasonic was the first to begin selling 3D sets in the U.S. in March, soon followed by Samsung and Sony.

The Bloomberg report notes that "The TV operations, which are expected to lose money in the six months to Sept. 30, may turn profitable in the second half, Miyata said. The yen’s sharp gain is changing the business environment drastically "but we are promoting cost reductions and sales of new products to make the business profitable."

Shares of Panasonic Corporation are down 0.3% this afternoon, to $12.67.

Posted-In: BloombergNews Guidance Global Intraday Update Movers

 

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