Sony Fights Red Ink In TV Business

Sony has announced it is selling its share of an LCD manufacturing business it operates jointly with Samsung. Sony will receive $934 million and continue to purchase TV screens from the venture, which Samsung will operate as a subsidiary.

Sony is making the divestiture as it faces steep losses in its TV set business, a sector it once dominated. Sales and profits have fallen while complaints about quality has risen in recent years.

Darla, of Arley, Ala., said she was watching her Sony flat screen TV last week when a huge black line appeared in the display.

"I called Sony Tech Support and spoke with someone who barely spoke, and I do mean barely, and who tried to talk us through trying different things," Darla told ConsumerAffairs.com. "However, there was no success and he said something about sending us a new USB port. It sounded like he's heard of the problem before. From everything I've read, this won't fix it since the LCD board broke and it would take a fortune to fix. The TV is barely 3 years old! The bad news is that there is a 52-inch TV also in the media room downstairs. Could the same fate be awaiting?"

Reputation for quality

Owners of flat screen TVs are well aware of the problems that seem to plague expensive LCD and Plasma TVs, and not just those made by Sony. Many brands appear to be affected. But many consumers, like Sujal, of Morganville, N.J., say they expected more from their Sony because of its reputation.

"I use to just believe in Sony products for quality," Sujal said. "They are not even on my top 10 list anymore. Their quality has gone down!"

Sony, meanwhile, is fighting a losing battle to remain profitable in the consumer electronics business. The company said - before the sale of the LCD manufacturer - it expected to lose over $1 billion in the current fiscal year.

Consumers shouldn't expect any product change because of the sale. Sony said it will continue to buy its screens from the soon-to-be Samsung subsidiary.