Toshiba to exit LCD business; blames it on less demand and plummeting prices

February 1, 2010, By Sanjeev Ramachandran

Toshiba Corp is planning to exit the LCD production scene. Increasing losses seem to have prompted such a move, as was evident from the results announcement over the past weekend. With LCD business soon to go off the Toshiba portfolio, the company hopes that the plummeting of sales owing to less demand, price dip and a strong yen could be checked.

If you would remember, the LCD unit was originally a joint venture with Panasonic. Toshiba had purchased 40 percent stake from Panasonic. The name then got altered to Toshiba Mobile Display Co. Ltd. in March 2009. The business scene had been rosy, until recently. Quoting corporate senior executive VP Fumio Muraoka’s words, the company is now examining all options, including withdrawal from the (LCD) business to stem increasing losses. For the record, the LCD business unit of the company Toshiba Mobile Display Co. Ltd posted an operating loss of 19.1 billion yen (around $211 million) during the April to December 2009 period. This follows, significantly, has been a continuing story, as it had posted losses of 16.2 billion yen ($179 million) and 10 billion yen ($110.7 million) for the same period in 2008 and 2007. The move seems to be speeding up, and we may not see any more Toshiba LCDs being made.

(Via TechOn)

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