AV Retailers Lament Panasonic’s Decision to Pull Plasma TV Plug

Panasonic confirmed long-rumored reports that it’s exiting the plasma business. “In order to fundamentally restructure the display panel business, optimize that business, effectively utilize its management resources and further improve the financial situation of the company, Panasonic decided to cease production of plasma display panels in December this year and to stop plasma business operations in March 2014,” a spokesman told us Thursday in a statement.

Robert Zohn, owner of specialty AV retail store Value Electronics, Scarsdale, N.Y., saw a modest uptick in interest for Panasonic models from customers after the word got out Thursday morning, he told us. He compared it to the sales bump that occurred when Pioneer stopped production of its well-reviewed Kuro TVs in 2009. Zohn was hoping there would be a 2014 plasma lineup from Panasonic, despite rumors over the past month, because plasma is the favored TV technology among Value Electronics’ customer base of video enthusiasts and wealthy consumers. “It’s my favorite technology because it’s what my customer base wants,” Zohn said. The store will continue to sell plasma models from Samsung and LG because plasma “is the best technology” available for TVs “until prices come down for OLED,” he said. Zohn said Panasonic told him it would refocus its premium TV efforts on LED-based LCD TV.

At the Panasonic website Thursday, the company’s TC-PZT60 65-inch plasma TV took top billing at a price of $3,799.99. CNET, in a May review, called the 60-inch version in that series “the best-performing TV we've ever tested.” The 60-inch model was selling at Amazon Thursday at a cart price of $2,999, down from $3,299.

The value-priced plasma TV category could get a welcome jolt from the Panasonic departure. Zohn said supply of the Panasonic plasma TVs is “constrained,” while demand is a bit higher. “There’s no compelling reason for a distributor or manufacturer to lower the price because they're going to want to get the most that they can for them,” he said. But he noted some big-box retailers who “don’t understand the product” could feel compelled to discount plasma TVs even more, while Zohn takes the opposite view. “It’s a demand item in limited supply and I would prefer to see a better margin for the remaining inventory,” he said.

Korean TV makers Samsung and LG are holding firm to their plasma TV commitment, for now. “Samsung remains committed to the plasma TV category,” a company spokeswoman told us, citing the company’s “award-winning” plasma TV line that boasts “excellent picture quality and features.” Consumers “can expect to see additions to this line in 2014,” she said. LG has previewed its 2014 plasma line for retailers and is planning to launch the new plasma HD models at CES in January, John Taylor, vice president-government and public relations, told us. Neither company made a commitment to plasma beyond 2014.

Phil Hannon, general manager at Abt Electronics, Glenview, Ill., called Panasonic’s decision a “big mistake.” For Abt, which has an online business and a retail store, “it’s a big part of our business.” As a result of the Panasonic departure, the plasma category “may just vanish,” Hannon said. “We do a lot of business with Panasonic plasmas so it’s very bad for their company,” he said. Customers who shop plasma TVs are going for “value for the size,” he said, and he expects those who would have bought plasma to migrate to LED.