Sony TV is Splitting to Three – LCD, Outsourcing, Next Generation TV

Sony

Sony

Sony announced that starting tomorrow, they will be re-organizing their TV division into three parts. The LCD TV, outsourcing, and next generation TV divisions. The idea is to better define the market to make better TVs.

Sony missed their July-September results last Wednesday, and analysts outlook is going to be under 200 bn yen (2.63 billion). It’s an eighth annual loss, Reuters reports.

Sony and Samsung Joint Venture in Jeopardy?

The LCD division is a joint venture with Samsung. As Market Watch is reporting, Sony might end this alliance that they had since 2004. Since LCD is changing to LED technologies, it is unknown how this partnership will stay fruitful.

Outsourcing Project

The outsourcing division is just that – certain TV parts are outsourced to reduce production costs. Sony began outsourcing in 2009 – which was odd for the electronics giant to do.  By outsourcing, they were able to compact their factories to bring profits up.

Next generation TV division researches the current trends of the TV. From Over the Top Television standards, to screen resolutions, OLED technology and sound breakthroughs.

Sony and Google TV

Of course, earlier in the week, Google announced upgrades to Google TV (which Sony produces for televisions and Blu-Ray players). With a better interface and the additional Android market, it breathes new life into the TV. While last years launch was not heralded, Google hopes this revamp will get Google TV in the right direction. Therefore, Sony could see a good bump in the market.

Whether this split will provide stability is to be seen. The division shakeup will happen on November 1st.