Sony, who uses third party manufacturers to make their Bravia LCD TV’s is set to be hit by flat panel display price rises according to a new industry report. There is also speculation that Sony Australia may follow their UK colleagues and start handing out money for old CRT TV’s in an effort to drive sales.
Globally, Sony’s LCD TV business is expected to report higher operating losses in the July to September period, compared with the April to June quarter, according to comments made by a Sony executive in Japan this week.
In Australia, Sony has seen TV sales fall from 30% share to less than 15% with the Company tipped to report falls in both revenue and profits.
In 2008 Sony Australia had profits after tax of $12.4 Million after tax on revenues of $823 Million. This is expected to fall in 2009.
In an effort to boost sales of their Bravia LCD TV’s Sony in the UK is offering $300 rebate for old CRT TV’s for consumers who also buy a new Bravia TV. However there are a couple of snags, you have to get a 26-inch TV or bigger. And in order to get the full $300 discount, consumers have to buy a 46-inch number, or larger.
The problem Sony face is that prices for LCD panels have been rising due to a glass substrate shortage. Prices for 32-inch LCD panels are now $215, up from $180 in mid-June.
Currently Sony buy’s their TV panels from third party manufacturers in China, Taiwan and Japan. Both Sharp and Samsung and AO Optics make Bravia LCD TV’s with all these Companies set to pass on price rises to Sony.
Shares of Sony fell 0.4% in early Tokyo trade Thursday despite a 0.2% rise in the benchmark Nikkei 225 Average. Sharp share rose 0.4%.
