Panasonic will cease TV production after over 60 years, transferring manufacturing and sales rights to Chinese electronics firm Skyworth while retaining brand licensing control.
Panasonic has announced it will completely exit television manufacturing after over six decades in the business. The Japanese electronics giant will transfer its TV production and sales operations to Chinese manufacturer Skyworth, marking a significant shift in the competitive television landscapeigskip.
The transition involves a brand licensing agreement where Skyworth will design, manufacture, and sell Panasonic-branded televisions globally. Crucially, Panasonic will retain control over brand licensing quality standards while Skyworth handles all manufacturing logistics. This model mirrors similar arrangements like Hisense's handling of Sharp TVs in North America.
Why Panasonic is Exiting TV Production
- Market Pressures: Intense competition from Korean (Samsung, LG) and Chinese manufacturers eroded profit margins
- Legacy Cost Burden: Maintaining aging manufacturing facilities became economically unsustainable
- Strategic Refocus: Resources shift toward higher-margin businesses including automotive components (Panasonic is a major EV battery supplier), industrial solutions, and IoT devices
For consumers, the immediate impact appears minimal. Existing warranties remain valid, and Panasonic will continue providing customer support during the transition. However, long-term implications include:
- Product Development Shift: Future Panasonic TVs will reflect Skyworth's engineering priorities rather than Panasonic's proprietary technologies like OLED Master Drive
- Regional Availability Changes: Distribution may prioritize markets where Skyworth has strong presence (Asia, emerging markets)
- Quality Control Questions: Though Panasonic maintains oversight, manufacturing quality now depends on Skyworth's processes
Industry analysts note this continues a trend of Japanese electronics firms retreating from competitive consumer markets. Toshiba sold its TV business to Hisense in 2017, while Hitachi exited TV production in 2012. Panasonic itself had already scaled back TV operations in 2021 by outsourcing production to TCL.
The licensing model allows Panasonic to maintain brand presence without manufacturing overhead. Skyworth gains instant global recognition through a storied brand name, accelerating international expansion beyond its Chinese home market.
For technical enthusiasts, the change raises questions about future support for Panasonic's proprietary technologies:
- Will HCX Pro AI processors continue development?
- How will calibration standards evolve?
- What happens to existing professional-grade OLED reference monitors?
Panasonic's TV division timeline:
| Year | Milestone |
|---|---|
| 1952 | First TV prototype |
| 1960 | Mass production begins |
| 2006 | Introduction of Viera brand |
| 2013 | World's first 4K OLED TV |
| 2021 | Outsourced production to TCL |
| 2026 | Full exit from manufacturing |
Current Panasonic TV owners should monitor official support channels for updates. The transition period is expected to last 12-18 months, with Skyworth-manufactured models likely appearing in late 2027.
This strategic retreat underscores how competitive dynamics have shifted in consumer electronics, where brand value and manufacturing scale increasingly reside in different companies. The move preserves Panasonic's brand equity while acknowledging manufacturing realities in a market dominated by vertically integrated Korean giants and cost-efficient Chinese producers.
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