Sharp Retools LCD Plant To Make Smartphone And Tablet Displays

Sharp Retools LCD Plant To Make Smartphone And Tablet Displays

Let's face it: HDTVs just aren't as white-hot as they used to be. And moreover, those who wanted an HDTV, have probably purchased one by now. Of course, the 3D craze is in full swing, but are sales really proving that people are flocking to replace their 2D 1080p set with one that supports 3D? Sharp, along with loads of other companies, is having to make some tough decisions, with the latest surrounding their LCD business.

The company just announced that they'll be restructuring the LCD business in particular, with the "aim of optimizing its production system for LCD panels." What's this mean? Well, it may not be as negative as it sounds at first. The company's Kameyama Plants #1 and #2 have traditionally been used for large-size LCD production, but demand for those panels has been sinking. In order to combat that, they're shifting production to middle-and-small-size LCDs, for use on smartphones and tablets. The company also seems to think that there's still growth in the 60"+ market, particularly in digital signs and electronic blackboards.


Sharp President Mikio Katayama had this to say: "Panel prices dropped because the growth of the LCD market (for 40-inch and smaller LCD TVs) slowed down. Those circumstances are hurting the profits of most of the major panel makers and LCD TV makers around the globe. On the other hand, the needs for high-resolution LCD panels designed for smartphones and tablet computers are rapidly increasing. By shifting to the field that generates high added value and has a high growth rate, we will retreat from the commodity field that has a low growth potential."

Sounds like a solid plan, but does this spell broader doom for large LCD plants? With the world shifting towards more mobile devices, is there still a vast need for these big screens? We suspect time (and sales figures) will tell, but it's clear that Sharp's pretty bearish on that.
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It sounds like this is going to drive the prices of small LCD's down in turn driving the mobile and tablet prices down. But also TV's are going to become more expensive since less manufacturers will be making panels for them. What do you all think?

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Sounds like a reasonable move on Sharp's part. I hope they can increase supply and bring prices down, which in turn should (hopefully) bring down the price of tablets and smartphones.

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Good plan :P lol, Wonder what would happen if everyone maker switched away from LCD :). Technology is advancing and once someone gets one thing, highly doubt they will go back in time :).

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This is an interesting business plan; I hope that they can successfully implement this while lowering prices.

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Just a thought this is a bit interesting because it just may be that folks in family multimedia situations may opt for several 40-46 size screens being used simultaneously as opposed to one giant screen setup.   still a good business option to crank out the smaller more in demand mobile screens from that plant.

shareholders probably like this news as well.

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