The recession rearing its head?
Japanese electronics makers shrink screens
SAN FRANCISCO (MarketWatch) -- Japanese flat-panel television manufacturers are shifting their focus to smaller models due to low consumer demand in North America and the weakening dollar, according to a published report.
A story in the Tuesday edition of the Nikkei Business Daily quoted Sharp Corp. President Mikio Katayama as saying, "We changed the strategy in July because of a plunge in North American sales of large-screen TVs."
A decline in consumer demand for televisions with screens of 40 inches or more is leading companies such as Sharp, Sony Corp. and Matsushita Electric Industrial Co. to focus on models with screens between 26 and 40 inches, the Nikkei said.
The manufacturers are also blaming global credit-market worries and U.S. dollar weakness for eating into profits.
In July, Sharp had remodeled production facilities in Mexico with plans to produce models with screens between 40 and 50 inches for the North American market, the Nikkei said. But in the wake of the economic slowdown, it now plans to sell 20% of the LCD panels made there to other TV manufacturers.
In addition, Sony , which had planned to position televisions with 40-inch screens or larger as key products in the North American market, may also now emphasize models with screens between 26 and 37 inches, the Nikkei said.
