Hitachi and Panasonic announced that they would be deepening their existing relationship in the plasma television business first established in February 2005. The new agreement has both sides supplying plasma display needs to one another, sharing components with one another, and sharing development assets (while the initial agreement had them partnering in R&D, production, marketing, and IP).  In particular, the following will happen:

  • Panasonic will supply Hitachi with their 103 inch plasma panels starting in fiscal 2007
  • Hitachi will supply Panasonic with an 85 inch plasma panel starting in fiscal 2008

According to the two companies, the rapid rise of the HDTV market coupled with rapidly falling prices has resulted in the need for additional collaboration. As prices continue to fall for HDTV displays, one can expect companies to either exit the market or partner with other companies in the research and manufacturing of new displays. One has to wonder how folks like Vizio and Akai can survive if their panels continue to drop in price. One thing is clear – this is all a boon for the consumer in terms of pricing… yet quality and support will undoubtedly suffer (or has already)

 

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