Sanyo and Quanta Computer to Form TV Alliance

Reuters Canada: Have you heard of a Sanyo TV? I haven’t. In Japan, I guess, Sanyo is a big name in CRT TVs. Maybe that’s why I haven’t heard of Sanyo TVs: I don’t plan on purchasing a CRT TV in the foreseeable future. Sanyo is bleeding money. Quanta Computer, the parent company to Quanta Displays Inc. (QDI), agreed on a TV business alliance with Sanyo on August 11 (today). FYI, QDI is being bought out by AU Optronics (AUO) because it is not big enough to compete with the 600-pound gorillas such as LG.Philips LCD (LPL), Samsung, AUO, and Sharp. So, you put a small display manufacturer like QDI and mate it with a loss-making old-tech TV manufacturer such as Sanyo and expect to see good things? I doubt it.

Sanyo stated that it will be moving its TV division’s HQ to the US to make it independent of the mother company and make it speedy. A return to profits is expected by the end of its business year ending March 2007. Sanyo has tried to forge an alliance with Nokia to make CDMA mobile phones, but Nokia nixed that idea in June.

Should we expect SanTa, Quanyo, Yota-branded TVs in the future? And when we do get to see these, will we want to forgo a Samsung or Sony-branded TV for one of these? Most likely not. But, before all is lost, let me make a few recommendations: locate the TV business HQ to China. Get closer to your LCD panel source, QDI in this case, and sell low-margin hiqh-quantity LCD TVs to the local Chinese market who might regard the Sanyo brand as better than the locals. This might be the only way to survive, for the time being.

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