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Bboid on 14 December 2008
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NJ5 said:
Bboid said:
NJ5 said:
Bboid said:

Sony is raising the price of consumer products in EU post xmas 08.  The Game divisionproducts are excluded from this.  This is to offset yen issues and to possibly open up their market in other divisions.  Full details have yet to be finalized/officially released.

That will go over well. I'm sure Samsung will appreciate it.

Not that Sony has much choice. They're between a rock and a hard place.

 

 

I would venture so say Samsung would also possibly raise prices.  They are a joint venture(with sony) in LCD flat panel TV's (research and panel production) so they may have a obligation to raise as well (benefits reaped soed back into joint venture research and offset one sides lack of contribution), but honestly i'm not entirely sure how that partnership is worked out.  I know it is strongly believed panasonic and toshiba both will also be raising prices in the EU post Xmas 08.  Frankly, it sucks if you plan on buying foreign electronics in the EU next year.

That's possible (though I wouldn't bet on it).

From the currency perspective, Samsung is very well positioned to drop the hammer on Sony, as the Won has been weakening against the dollar and euro.

 

If you think about it in a strategic manner, having the venture split between 2 asian electronics powerhouses (japan and korea) it provides a nice outlet to avoid potential currency fluctuations in a single market.  It is likely (even if samsung raises their prices as well) that they would only see a rapid rise in profits.  This is good news because it means R&D and production of the panels for both Sony and Samsung will continue (leading to the chance for production costs to drop).  There is even a good out for Sony, should they decide to cut their own throat and sell off their share in the venture (if this happens I will stop watching TV's for the rest of my life *empty promise*).  The partnership will continue to grow, albeit slower than expected, and continue to gain value.  So I think Sony's LCD division is still in a good place even considering currency issues and falling demand as noted in their forecast adjustments.

 

BTW, still trying to find clear details on partnership.  Might not be readily avalable to just anyone though.  Based on their long standing relationship, which only seems to be strengthening, Samsung may go out on a limb and meet halfway(price increase as well but less than sony's).  Aside from LG and Samsung, the HDTV market seems to be heading into rough seas.