High-end favourite Pioneer has confirmed that it’s exiting the plasma business. In addition to killing its lauded Kuro TV brand, it will also cut 10,000 jobs. 6000 will come from its global work force of 36,900, the rest from temporary positions.
The dramatic announcement came as the brand announced ongoing losses, driven by slumping demand for consumer electronics and in-car entertainment products.
Pioneer says it will be out of the screen market by March 2010. In a statement, the company says it 'will close its US and UK display production facilities in April and February 2009, respectively.’
Pioneer says it aims to transform itself into a Car Electronics business, but maintains that its home electronics business ‘will continue to develop home audio products as well as DJ equipment and will focus on its specialisation in sound, as we take advantage of our extensive audio technologies and expertise developed over the years to develop new business domains.’
The company will continue its optical disc business as a joint venture, in all probability with Sharp, but says it will 'review R&D functions to reduce their scale in line with the new business structure.'
Jim Catcheside, Pioneer's product manager, told HCC: 'While we'll be out of the screen business completely by March 2010, everything else remains the same, receivers, systems and so on.'
Pioneer is obviously keen to downplay the scale of the announcement, claiming that plasma only represented 14 per cent of its global business. However, proportionately it was far more significant in the UK and Europe, where the brand was most successful in selling its TVs.
Catcheside adds that the departure of Kuro will not change the brand's high-end aspirations. 'We're keeping with our premium strategy. We'll be at Sound & Vision -The Bristol Show next week with a full-range of screens and AV equipment. But there's no plans to knock them out cheap. They'll be in our range for the rest of the year.'
Copyright 2006 - 2009 Future Publishing Limited
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Pioneer
scarrstewart - 12 February 2009 - 11:57amA travesty. I would have expected to see news like this on April 1st.
Sad News Indeed
AndyM (not verified) - 12 February 2009 - 12:16pmThis is indeed sad news but an unfortunate sign of the times.
On the plus side, my first car CD player and speakers were Pioneer and they were awesome! So if they can continue making great quality car audio products then there could be a great future for them.
Not all TVs just Plasma
Anonymous (not verified) - 12 February 2009 - 2:44pmNot all TVs just Plasma right?
This is very sad news
Guffmuffin (not verified) - 13 February 2009 - 10:41amThis is very sad news indeed. I have been a huge fan of Pioneer's consistent efforts to push the boundaries of the Plasma TV.
They have always been at the forefront of this technology and I have found their products to be far superior to their rivals.
Unfortunately this has always come at a huge premium in cost to the consumer so I am not surprised that with the value offerings that we see from the likes of Samsung, Pioneer simply can not compete.
Goodbye Kuro, you will long be remembered (until LED backlit LCDs become cheaper and more commonplace of course :)
No doubt Pioneer saw the end
AnoNeil (not verified) - 15 February 2009 - 4:01pmNo doubt Pioneer saw the end was nigh for Plasma as LCD screens with LED backlighting begin to offer competitive contrast levels at much lower prices.
At least HCC will be able to focus on other manufacturers interesting ranges (Philips?) instead of constantly orgasming over Pioneer and their contrast levels.
pioneer to me were about
Anonymous (not verified) - 25 February 2009 - 1:38ampioneer to me were about quality, not shifting units of plastic crap like certain other manufacturers. they got the style and quality just right. unfortunately quality comes at a price. they will be sadly missed.