Thomson suddenly announced that it will enter the LCD panel industry and will give up on the plasma market.
When this news came out, it caused a huge commotion in the industry.
One of the world's top electronics companies had announced this news, and it is one of the leading manufacturers in the plasma industry. Many people wonder if LCD is really better than plasma.
Plasma technologies are still better than LCD, but the biggest problem is the Japanese manufacturers are holding onto this technology and are unwilling to share it with other manufacturers.
Thomson Group, Samsung Group, and other top companies had fallen to the second group, let alone Taiwanese companies. They were in the third group.
Plasma TV's profits are high, but most of the profits are taken away by the Japanese manufacturers. Panasonic, Sony, Sharp, and many other Japanese companies had formed an alliance, and they own 80% of the plasma TV market share and more than 90% of the profits!
Thomson and other companies do not have a high market share, and their profits are not as high as the other companies. The Japanese manufacturers had made a lot of profits, but they had neglected one problem. When the Japanese are the only ones promoting plasma TV, will the plasma TV still sell well?
The consumers will not care about the advantages of the gray scale, color gamut, or other aspects. To the consumers, they only need to spend a certain amount of money to buy a good product. This is because of the price-performance ratio.
The Japanese manufacturers do not have any advantage in branding.
Sometimes, better products are not accepted by the consumers. For example, in the telecommunication industry, CDMA is better than GSM in terms of power consumption, voice quality, and security. But in the end, more consumers still choose GSM.
In the future, GSM, 2G, 3G, 4G, etc., will continue to advance. On the other hand, CDMA is slowly disappearing in the river of time.
But Feng Yu felt the most important reason is the improvement of LCD technology. Many people had not expected this. There were many people researching this area, and many small improvements combined to form such a huge improvement.
If the plasma TV's progress in three steps, then LCD technology's progress is three steps.
Now, the difference between LCD and plasma TV is getting smaller. To ordinary consumers, the cheaper LCD is better and has a longer lifespan.
That plasma TV costs a lot of money to repair, but LCD is different.
Moreover, from LCD to LED, there were also various new LCD technologies such as TFT technology, IPS technology, TN technology, PVA technology, MVA technology, CPA technology and so on.
Some of them were developed by Wind & Rain Electronics, some were developed by the Samsung Group, and some were actually produced by Japanese manufacturers. Although they mainly produced plasma TVs, they also produced LCDs. In other words, the development of liquid crystal technology was changing with each passing day, and everyone had their own main focus.
Although the detailed standards were different, they at least followed the basic standards of liquid crystals. The popularization and promotion of standards had a crucial impact on the product.
The LCD standards were controlled by the Japanese manufacturers, and they wanted everyone else to follow their standards. If anyone did not follow their standards, it would be wrong. This alone had caused many companies that produced plasma TVs to suffer losses.
In the beginning, they were making money. But as the standards were upgraded, their technologies could not meet the standards, and they slowly fell behind. Within three years, they had fallen behind too much and were kicked out of the market.
Feng Yu had insisted on developing LCD technology is because from his previous life, LCD had defeated plasma in the future. Also, it is obvious that LCD has a wider range of applications.
Just mobile phones alone will require LCD technologies to improve in the future, not to mention tablets, PCs, TVs, etc.
The time when plasma TVs suffered losses was 2008. During the economic crisis, the expensive plasma TVs were not selling well, and LCD TVs accounted for more than 80% of all flat panel TVs!
At that time, all the plasma TV companies started to lose money, and LCD TVs entered its golden age.
The current LCD TVs are still very thick. But with the development of LED technology, LCD TVs will become thinner. LED is not a new technology, but not many people paid attention to it in the past. Everyone only treated it as a type of light bulb.
LCD TVs do not emit light and need to be backlit. LED can make the light source smaller, and it can make the TV thinner. From being placed on the TV cabinet to being hung on the wall.
LCD technology will continue to improve, and Taihua Holdings and their allies will have higher profits. Of course, although LCD TVs' sales might be able to compete with plasma TVs in the short term, the profits are much lower than plasma TVs.
This is also the reason why Thomson is not willing to withdraw from the plasma market. That's why Thomson had accepted Feng Yu's suggestion and decided to use a two-front strategy.
Thomson's announcement made the Japanese manufacturers celebrate. This way, their biggest competitor in the plasma market will be South Korea's Samsung and LG. If they can defeat South Korea, they will monopolize the plasma market.
The market is huge, and it is still expanding. Since Thomson wants to withdraw from the market, they should expand and take over Thomson's market share. This will prevent the South Korean manufacturers from taking advantage of them.
The top management of the Japanese manufacturers met again to discuss how to split the market share. It was a pity that their alliance was rather loose. After all, they were also competitors.
Panasonic is the world's leader in the plasma industry. In the past, Panasonic had invited the other Japanese manufacturers into the alliance to control the market. Now, the market share is good, and Panasonic will not let Sony and the other companies grow.
So, Panasonic secretly decided to expand their plasma TV production lines. They will not only take over Thomson's market share, but they also want Thomson to withdraw from the plasma market earlier.
Sony, Sharp, and the rest of the companies also have the same thoughts. They want to increase their production capacity and increase their say. They cannot let go of the leader of this alliance.
The year before, last year, and this year, it should be their turn next year.
As long as they have the highest sales and profits, they will have the most say in the industry.
At the same time, the struggling Taiwanese plasma manufacturers also saw the light of hope. Without a giant competitor, they will have more opportunities.
This way, they will have a higher chance of standing out in the plasma TV industry.
In the eyes of these plasma manufacturers, Thomson had made an extremely wrong decision. They were laughing at him in their hearts when they heard rumors that this decision was made because of Feng Yu's suggestion.
Didn't you, Feng Yu, make the right investment every time? I didn't expect you to make a mistake.
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