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NEC-Mitsubishi to split, quick transition from CRT to
LCD named as reason.
15 March, 2005
by Chris Talbot
The display divisions of NEC and Mitsubishi will be calling
an end to their joint venture and going their separate ways
as of April 1. After that, the NEC- Mitsubishi name will be
no more, and the NEC side of the joint venture will be returning
to its roots as a full part of its parent company.
The NEC and Mitsubishi display divisions joined together
in 2000. At the time, both companies were strong and experienced
in specific areas of display. Mitsubishi had a strong CRT
business, while NEC brought in the LCD expertise, said Tim
Dreyer, a spokesperson for NEC-Mitsubishi. On April 1, NEC
Display Solutions of America will be formed (or re-formed).
"The rationale for the decision to come together was
to create a large company that would have both product offerings,
and utilizing the R&D that NEC brought, the manufacturing
expertise Mitsubishi was bringing, and really allow the company
to grow in a number of different areas," Dreyer said.
So after more than four years, why are the companies splitting
up? Dreyer said it has to do with the market.
"The transition of the market from CRT to LCD happened
much faster than really anyone predicted, and I think most
people had anticipated it coming about in 2008 or 2007. It
really kind of came about much faster than anyone expected,
and that really fulfilled the initial objectives of the joint
venture," Dreyer said.
NEC's channel partners won't see any changes in the company's
go-to- market strategy. NEC Display Solutions will still be
focused on the channel, and the strategy will remain largely
unchanged, Dreyer said. However, channel partners will likely
have access to new products from NEC that the company couldn't
bring to market because of non-competition clauses in the
joint venture agreement. With that agreement nullified as
of the beginning of April, NEC will be free to bring those
products to market. Since the agreement is still currently
in effect, Dreyer wouldn't hint at what products NEC might
bring to market after the venture has been terminated.
"The association of the different branding of both companies
was a little difficult at times, so coming back into the NEC
family, it makes it easier to communicate. We also now will
be deeper entrenched into the technology and research and
development of NEC than we were," Dreyer said.
Since NEC's expertise in the joint venture was in LCDs, does
this mean the company is dropping CRT products? In fact, the
opposite is true. Dreyer said the company will be making new
CRT product announcements next week. Although the CRT market
is fading away, he added, NEC will continue to serve the market
as long as it's there.
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