Early this morning, Sony, Toshiba and Hitachi came out hand in hand to declare that they were merging their small screen divisions into one liquid crystal behemoth. The new entity will be known as Japan Display. And it’s a good thing for you.
By Voltron-ing their LCD businesses, the three companies have created the largest manufacturer of LCD screens for phones, cameras and tablet displays. Which is a good thing for their collective business, as all three companies have lost money in previous years. The merger allows them to focus their energies on combating the might of Samsung, as well as aggressive companies like Sharp, who’s expected to get a billion dollar investment from Apple soon.
All this kind of screams anti-competition, but it’s the exact opposite. Samsung, for one, is larger and more connected than any other Japanese company in the market. By joining forces, they’re able to pool their resources and create better, more competitive products. More competitive also means cheaper, all great for the average consumer who wants a good phone or camera for a good price. And don’t forget that all three companies will remain distinct save for this one sector.
Now let’s see where this goes. [Reuters, NYT]
Photo: AP Photo/Katsumi Kasahara