If you have a multi-billion dollar electronics product which has been losing you money you have three options. You can try to sell it to some sucker who won’t look at the financials, you can close it down and hope no one notices, or you can cut costs to actually try to make money.
Sony, and now Philips are realizing that the HDTV industry is capital intense and highly competitive. Neither of them want to take the Vizio route and let some other company design the television with them just doing the marketing. Instead both companies will be working with Sharp to use their screen in their upcoming televisions.
Sharp has a great new factory with lots of capacity and for a TV maker it’s a lot better to leverage existing resources instead of trying to spend billions in hopes of getting it back later.
Television from these arrangements may not hit shelves in 2010, but come 2011 many televisions will have Sharp screens powering them.
[Source: Crunchgear]
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