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October 18th, 2010, 14:25 GMT · By

Troubling Finances Make Sony Outsource LCD Production

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Sony outsources LCD production
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Even though some parts of the world are, more or less, over the recession, there are still areas where finances aren't doing as well as they could, prompting companies like Sony to possibly consider enlisting the assistance of other manufacturers.

Apparently, Sony has been having trouble with its LCD TV business for a while, as it has been, among other things, selling its overseas plants.

Now, a recent report made by Digitimes reveals that the company will be outsourcing full panel production on many of its displays.

What this means is that companies like CMI, Foxconn, Wistron and others will be responsible with the actual manufacture of Sony's products.

If the rumor proves true, this will be the first time when Sony actually outsources not just the assembly but the full panel production.

Digitimes' report says that about 80 percent of Sony's total sets slated to sell next year will be made by other companies.

The largest part of them, between 40 and 50 percent that is, will be handled by CMI, one of Foxconn's affiliates.

Wistron will also produce part of Sony's orders, about 7-8 million, most of which will be Google TVs, and this may prove lucrative for both sides if web-connected TVs grow quickly as a market.

Foxconn itself will contribute 18 million sets, ultra-thin models for the most part and given that Foxconn now owns one of Sony's former panel-production facilities, product quality should not drop.

Other manufacturers likely to get orders from Sony are Compal Electronics (under 1 million units) and TVP's LCD shipments to Sony will also drop to under 1 million next year.

For those interested in further numbers, Sony intended to reach a sales figure of about 40 million during 2011, but has since downward adjusted that number to 36 million.

Of course, none of the involved parties commented on the report, so nothing is certain yet.
FILED UNDER:
Sony
LCD
display
LCD TV
monitor

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