Pioneer calls it quits on TV business
Pioneer, one of the longest standing TV manufacturers in the world may be calling it quits. Reportedly, the electronics giant may be looking into spinning off its TV business by selling it. If the rumor is true, than Pioneer would be the latest victim of the recession.
According to Japanese newspaper, Nikkei, Pioneer is currently contemplating if the company should exit the TV business altogether. Apparently, the company is also thinking about getting help by entering into a joint venture with Sharp to manufacture DVD players. If true, this would be bad news for the company as these products have become an integral part of the its core business.
Pioneer announced that the company is anticipating a huge loss at the end of the fiscal year in March. The company also revealed plans to layoff 2,000 employees. Previously, the company was considered to be doing well with several successful TV lines. However, company execs have indicated that due to increases in manufacturing costs, it has made it difficult to compete in the marketplace.
One of the biggest clues regarding Pioneer’s decision may be the fact that the company showed zero TVs at CES. Due to the state of the economy, even powerhouse CE manufactures like Samsung have indicated losses. According to the Pioneer, the decision has not been finalized but is currently in discussion internally. A Pioneer rep. has indicated that the company is in the midst of reevaluating its goals and approach going forward.
It truly is sad to see so many companies suffering due to the state of the economy. It is questionable as to how well Pioneer will fare if the decision to exit the TV market is made. It is definitely a sign of desperate times when companies start axing away at its core businesses.
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