Indicating reduced profitability in the video display market, Fujitsu (OTC: FJTSY) has announced its departure from the production of high end plasma televisions. This news comes via ars technica and is indicative of a major trending pattern. Much is astir among Japanese electronics manufacturers as companies there take a turn for the lean and are engaged in forming manufacturing power alliances.
Much is being affected by the near total domination of liquid crystal display technology within a tightening, yet deepening image display sector. Take further evidence of change by considering Brian White's post about the exit from rear projection television by Sony Corp. (NYSE: SNE). The LCD field is currently saturated and for it's improvement it needs to thin out.
Strides are still being made in regard to making LCD displays thinner and engineers are working on reducing power consumption. Little can be done however, to improve LCD profitability with so many companies cranking out cheap displays. What's needed now is for some of the remaining display manufacturers to aggressively address some considerable quality issues.
Gary Sattler does not knowingly hold financial interest in the companies he blogs about.
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