As much as 70 percent of TV output will come from other manufacturers by the year ending March 31, 2015 from 40 percent now, Tokyo-based Toshiba said in a statement today. The company is targeting cost reductions of 20 billion yen ($204 million), spokesman Toru Ohara said by phone.
Japanese TV makers are struggling with stalling demand and falling prices amid competition from South Korean rivals including Samsung Electronics Co. (005930) and LG Electronics Inc. (066570) Toshiba is expanding in semiconductors, medical systems and energy amid falling sales of liquid-crystal-displays and 100 billion yen of TV losses in the past two years.
“In TVs it’s difficult to compete against the South Korean makers and Toshiba wasn’t able to add extra value to its TVs,” said Tsunenori Ohmaki, an analyst at Tachibana Securities Co. in Tokyo. “It’s positive for Toshiba to take action before losing more money.”
