Zydo: the market for all sorts of TV (flat panel is in a huge nosedive as anyone can see. Prices are so low no company is making any money. The market is oversaturated. The start up of flat panels was great, they made more, and more, now they are making too many. They have to give them away at cost to just be able to move them/ That is stupidity in action.
They all knew the market is saturating, and still make too many anyway.
Perhaps it is just to destroy the competition?
The company which can survive losing money the longest will win???
So anasonic, instead of reading the market, went and blew billions on a new plant. In effect making themselves broke and not being able to withstand the sell below cost market we have now.
So they did not see what was coming. Whichanyone can see and is a typical market event. When new tech take over. everyone wants one. then they got one. And they are all new, so not many buying another.. Well the manufacturing is going to take a big hit during that overcapacity period. PERIOD.
Some companie DO NOT overmanufacture. Even though they could. Like Magnepan. they are way behind on orders.. but they already know that if they built a new factory, as soon as the wave of newness ended, they would go broke. So they plod along in the old factory, and will certainy be around after the frenzy is over. Ditto VPI, same thing, they understand what thier market is like.
Obvious to me Sony and now Panasonic did not.
Anytine a company bulds a new factory and shuts it down in a year they clearly had their heads up thier collective asses.
