Panasonic on the brink of TV withdrawal? The traditional manufacturer is considering withdrawal
Panasonic is apparently considering withdrawing from the TV business. Despite excellent picture quality and strong new OLED models, the Group is struggling with declining market shares - the future of the TV division is on the brink.
Update from 17 February, 8:33 am: Panasonic has responded to reports of a possible withdrawal from the TV business and published a clarification. According to the statement, the statements made by CEO Yuki Kusumi were "taken out of context" and "blown out of proportion". The company emphasises: "Our journey in the TV industry is far from over." Click here for the original article:
Panasonic - a name with a reputation like thunder. For years, it has enjoyed an excellent reputation among experts and testers: outstanding image quality, precise calibration options and high-quality workmanship. The OLED Z85A I recently tested also demonstrated this impressively.
However, this era could soon come to an end. As Yuki Kusumi, President of Panasonic, confirmed to Nikkei Asia, the Japanese company only wants to focus on areas with growth potential in the future. For this reason, the company is currently seriously considering downsizing or even selling the TV division completely.
No decision has been made yet, but the idea alone is arousing interest.
Difficult market situation and pressure from competitors
Panasonic must have realised that quality alone is no longer the only success factor - especially in a market that is flooded with affordable models from Chinese manufacturers such as TCL and Hisense. The price pressure is brutal. The competition is merciless.
And yet Panasonic has only just unveiled new OLED models with impressive peak brightness at CES 2025 - a clear sign of innovative strength.
However, behind the glitzy presentations, there seems to be a lot going on. The integration of Fire TV as a new, much more accessible operating system should have given Panasonic a boost. However, the hoped-for success failed to materialise. No wonder: "The Fire TV operating system is impressive in Amazon-centred households," I wrote in the tested version, "but outside of this ecosystem, it remains functional and unspectacular."
The only thing that remains unchanged is that the company is still struggling with falling market shares: from around 20 per cent in the 2010s to currently 12.8 per cent - and the trend is falling. Panasonic's market share has almost halved, particularly in Japan, its home market. At the same time, high investments in other areas such as the automotive battery division are putting additional pressure on the company.
Who could take over Panasonic's TV division?
Panasonic would not be the first traditional manufacturer to leave the TV market. Toshiba sold its TV business to Vestel back in 2016, while Sony has been losing market share for years. Vestel, Hisense or TCL could also be potential buyers for Panasonic's TV division.
Vestel, the Turkish electronics group, already has experience with such takeovers and could enhance its portfolio with Panasonic's premium technology. Hisense and TCL, on the other hand, two aggressively expanding Chinese manufacturers, could benefit from Panasonic's expertise in picture calibration and OLED technology to strengthen their position in the high-end market.
President Kusumi emphasises, however, that the search for a buyer will be challenging. Investors would not only have to be convinced of the quality of the products, but also believe in the growth potential of the business. Not an easy endeavour given the tough competition and dwindling margins.
Header image: Luca Fontana
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Luca Fontana
Senior Editor
Luca.Fontana@digitecgalaxus.chI'm an outdoorsy guy and enjoy sports that push me to the limit – now that’s what I call comfort zone! But I'm also about curling up in an armchair with books about ugly intrigue and sinister kingkillers. Being an avid cinema-goer, I’ve been known to rave about film scores for hours on end. I’ve always wanted to say: «I am Groot.»
