Toshiba cutting R&D budget for HDTV due to weak demand -- Is this a forward looking sign?

Discussion in 'Displays' started by Kevin Collins, Jul 30, 2013.

  1. Kevin Collins

    Kevin Collins Owner, from The Other Washington

    Jan 14, 2007
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    Seattle, WA
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    Kevin Collins
    On Friday, Toshiba said that it would cut a total of $100 million in costs in its enterprise on PC and television. The corporation would cut the budget this year to March next year and then double the budget reduction in 2015. The reduction of budget would be done so that it could manage the constantly weak demand.

    Toshiba said that it would reallocate its 400 employees from the domestic TV and PC enterprise to its unit that focuses on social infrastructure. For two years, its TV business suffered from weak global sales.

    Toshiba further hoped to increase the number of televisions that it was able to sell to 40% of total revenue from just 30% in 2012. It would focus on the emerging economies while expanding its line of expensive LCD TVs.

    There has been rumors before that I posted about other Japanese companies reducing budget for HDTV technologies. I wonder if this is going to be a growing trend because of the continued profits available on HDTV's and because consumers are not upgrading displays like they were from the analog to digital transition phase.

    If companies are cutting budgets for TV, where will the investment be for OLED and UHD?

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