In fact, for the loose alliance of electronic companies in the island country, Sunny has already planned to temporarily suspend cooperation in some businesses. For example, they wanted to enter the plasma TV field at the beginning, but now they suddenly feel that the gains outweigh the losses.
For the sake of plasma technology, they neglected to improve liquid crystal technology, causing Sunny, who was originally in the first echelon of liquid crystal technology, to slowly fall to the second echelon.
Although Sunny has successfully entered the first echelon in terms of plasma technology, if you look at the industry profits, you will know that they are actually losing money.
Plasma TVs have always been more expensive than LCD TVs.
When plasma TVs first emerged, or flat-panel TVs first emerged, plasma production costs were slightly lower, seemed more competitive, had better technology, and were more profitable.
But as a result, the market share of LCD TVs has been rising, while the market share of plasma TVs has been declining.
They are all flat-screen TVs, but LCD ones are much cheaper than plasma ones. Many people buy them home and can't see much difference at all.
Plasma TVs cost more than two thousand dollars, which is enough for someone to use an LCD TV and a complete set of good home theaters.
In other words, plasma TVs have naturally become a luxury item in TVs.
Originally, this was nothing. Focusing on high-end consumer goods was also a good choice. Wouldn’t it be more profitable
However, LCD technology continues to improve. With the efforts of other electronics companies and the leadership of Fengyu Electronics, many technologies are now no less than LCD TVs.
Although there are still some shortcomings, they are not major and do not affect the TV viewing experience. Moreover, the cost of LCD TVs is gradually decreasing, and profits continue to increase.
The research and development expenses on their plasma side are higher, because there are fewer companies in the camp, so the sharing is limited.
This has caused the actual profits of their plasma TVs to continue to decline, and the speed of technological improvement is still far behind that of LCDs.
For example, making TVs smaller is very difficult for plasma. The ones produced now are still above 42 inches. Small ones can be produced, but the cost is higher and the profit is lower. How can they be willing to do so? do it.
LCD TVs can be produced from more than ten inches to dozens of inches. Of course, the mainstream ones are between 20 inches and 40 inches. No matter how small they are, they are usually used for monitors. No matter how large they are, there are also some, but mainly It is used for large screens in business places, but ordinary families cannot use it at all.
LCD panels have a wider range of applications and are involved in more companies. On average, R&D costs are very low.
For example, some new technologies developed by others cannot be used directly due to patent protection, etc., but it does not mean that they cannot be disassembled and imitated. With just a few changes, wouldn’t it be a new technology
You can even directly purchase or exchange patent licenses to shorten technology research and development time. These are all good ways.
But as for Plasma, they Songxia-Suni are from the first camp, and the technologies of other camps are far inferior to them. In order to maintain their technological advantages, these companies have invested relatively heavily, resulting in lower and lower profits.
Fortunately, Songxia was the dominant brand in the plasma TV industry at the time, and its brand was more well-known. Many people bought plasma TVs, and the most recognized one was the Songxia brand.
But Suini can't do that. They joined this camp later. The Suini brand alone cannot make their plasma TV sales grow much. As for public technology research and development costs, they still share them equally. In some core technologies, Songxia is still slightly ahead of them.
This has led to a decline in the overall sales of the plasma TV industry, and Songxia's profits have decreased, but it can still make a lot of money. However, for companies such as Suini, profits are very slim.
At this time, Suini is a little bit in trouble. If you quit, your previous investment will be lost.
After finally entering the first gear, even if it falls to the second gear, it is still a failure.
But if you don’t quit, you won’t make much money. Seeing other companies making more and more money from LCD, how can they not be jealous
Sunny still can't give up LCD. After all, their PC monitors, or screens for game consoles, mobile phones, etc. all need LCD technology, and they are already lagging behind in this regard.
In other words, Sanni can be regarded as taking both paths, just like the Four Star Group and others. It's just that the two sides have different focuses. The Four Star Group pays more attention to LCD, and they pay more attention to plasma.
The advantage of two parallel paths is that no matter which path can go further, they will never be left behind. But the disadvantages are also obvious, that is, the company's focus will be dispersed, and it will have to invest double the costs of research and development, operations and other expenses.
Suini suddenly regretted it at this time. He should have known that he should not have joined the plasma camp in the first place. He made a lot of money for a year or two at first, but it made them fall behind in the development of LCD technology. Back then, they were in the LCD camp. The camp is also in the first echelon!
At this time, Sunny's internal analysis has already concluded that Plasma will be hit hard this year. Although it will not withdraw from the competition, its sales will definitely be completely suppressed by LCD flat-panel TVs.
So why did they join the plasma camp in the first place? Thankless
Let’s just say that the subprime mortgage crisis in the United States has spread to the whole world, and island countries have naturally been severely affected. Sunny didn't invest much in subprime bonds, but like Thomson, they also had their own credit company, a credit company for electronic and electrical products.
Ordinary electronic appliances naturally do not require installment payment, but for large items such as PS game consoles, laptops, digital cameras or plasma TVs, installment payment is still relatively common.
At this time, affected by the subprime mortgage crisis, their credit default rates also increased.
Although they did not suffer a huge loss, they did suffer some losses.
The most hateful thing is that the one with the highest default rate is plasma TV!
Norio Ohga was particularly depressed when he saw this. Plasma was about to become the second most painful thing in his mind. The first biggest pain was naturally the sale of AIWA.
Now Sunny's board of directors has begun to debate the matter of plasma. Some people support him and believe that his original choice was right and that plasma has not failed yet. It is only affected by the subprime mortgage crisis. Otherwise, it should still be able to make money.
Some people directly said that his original choice was wrong, which made Suni take a detour. He fell behind in LCD and failed to surpass Songxia in plasma.
Now that the company's profits have dropped seriously, it's his fault, Norio Ohga, and he needs to take responsibility for this.
When he made so much money for the company, why didn't those directors say they would reward him? Moreover, this decision was originally discussed by the board of directors. Why should he take the blame
He, Oga Norio, will never be defeated. He also wants to lead Sunny to defeat Fengyupai, AIWA, and Feng Yu!
… (To be continued.)