2/12/09 Pioneer decides to End TV manufacturing

Pioneer Electronics has decided to close its plasma TV division to shed 10,000 jobs as it struggled with a sharp decline in sales due to its higher end TVs. "In this economic environment its just difficult for premium brands to survive if they dont have a tremendous balance sheet." states CEAG editor Robert Wiley. "We still feel that Pioneer is producing the best picture on any TV - plasma or LCD, but as a smaller manufacturer it just cant continue to compete pricewise in this downturn. The company has been burning through its cash at a phenomenal rate. We also understand that the company is also going to ditch plans to produce LCD TVs. They will be out of the TV business by next year."

Plasma TV shipments will fall to 290,000 units in its current fiscal year down from 460,000 in the prior year. Pioneer's president expressed regret that Pioneer had to exit this business.