UPDATED 08:51 EDT / SEPTEMBER 02 2011

LCD Backlash Teams Sony, Toshiba and Hitachi

The global popularity of the iPad has ushered the tech community into a new era.  The success that Apple’s tablet has reached since its inception has lured competition to either create their own version of an iPad-killer, or enhance their current line-up and reinvent technology in an attempt to gain market leadership.  Perhaps one of the most aggressive regions in the world, Asia, has taken bold steps to innovate and stay in good shape for the future of end user computing.  An excellent example of this is Japan’s $2.6 billion investment that will complete one of the biggest mergers in the country and possibly the world, teaming the three biggest electronics companies: Sony, Toshiba and Hitachi.

The Innovation Network Corporation of Japan (INCJ), a public-private partnership initiated by ex-minister Taro, pumped the above-mentioned funds to support small-panel liquid-crystal-display businesses run by the Sony, Toshiba and Hitachi. They are eyeing spring of 2012 for the completion of the deal. It is also mentioned that INCJ will own 70% share while the triumvirate will hold 10% apiece.

The companies outlines how they will work on a 3-way partnership, and the amount that will be invested in this venture:

“All of the issued shares of subsidiaries Hitachi Displays, Sony Mobile Display and Toshiba Mobile Display and other assets are to be transferred to the new company which is to be called Japan Display. INCJ, which provides financial, technological, and management support for next-generation businesses, plans to invest ¥200 billion (US$2.6 billion) in the joint venture in exchange for shares to be newly issued by it as a third-party allotment…”

Among the trio, Sony is perhaps the busiest, and has been showcasing laudable talent at IFA 2011 being held in Berlin, Germany.  Although it is not crystal clear at present, this move seems to be a commencement of an undertaking to assault iPad.  Also, it could be a strategy to protect Japanese products from rising opponents within the continent, specifically from South Korean brands like Samsung and LG and Taiwan’s HTC.

Amidst the separation of Sony, Hitachi and Toshiba of their LCD business from their core, Panasonic is firm in keeping it.  The Osaka-based enterprise described it as “tough business but it’s a strategic business” and will be focusing on European revenue.  Another Japan-bred television manufacturer, Sharp, is set to launch a 70/60 inch professional touchscreen LCD monitor that can be used as an electronic whiteboard for workplaces— less mobile but could spell a change in the way we hold conferences and meetings.

According to a Bloomberg review, iPads will potentially be more expensive than LCD televisions available in the market. With this is mind, organizations are rattled and have been trying to re-model their brands and innovate their systems to ensure that they will hang on to the competion.


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