Sony will outsource more LCD TV integration to Taiwanese companies in 2007. TPV Technology and Delta Electronics are expected to secure 32″ LCD TV integration business from Sony in 2007. Sony’s fiscal year ends in March 31, 2007 and the company expects to ship six million LCD TVs. Most of the high-end LCD TVs are built by Sony while entry-level 32″ and 40″ models are made by TPV. Models that are 20″ and smaller are being integrated by Amtran Technology.
Outsourcing the integration of a LCD TV might not sound like such a big deal. That is, until something bad happens. And Sony should know. Most of Sony-branded batteries are not “integrated” by Sony at all but are made in Taiwan, China and other places where labor costs are much lower than Japan. This is precisely the reason why Sony is outsourcing its LCD TV integration. But what happens when quality suffers as it did for its batteries? Incremental savings in cost might put a smile on the CFO’s face, but when they start blowing up, figuratively speaking, with quality problems, the cost savings might not be worth it. I for one will be looking very carefully to make sure I get a Sony that is Made in Japan.