The Japanese giant Tuesday announced it has signed a Memorandum of Understanding with Chinese consumer electronics company TCL to advance talks on establishing a joint venture that will acquire Sony’s television and audio businesses.
TCL will own 51 percent of the new company and Sony will own the rest. The JV will take over product development, design, production, sales, logistics and customer service, but will not need to develop new brands as Sony likes to use existing names, such as the ‘Bravia’ label it has applied to TVs for 20 years.
“The new company plans to advance its business by leveraging Sony’s high-quality imaging and audio technology developed over the years, brand equity and operational expertise, including supply chain management, while leveraging TCL’s advanced display technology, global scale advantages, industrial footprint, end-to-end cost efficiency and the strength of its vertical supply chain,” Sony’s said statement about the issue.
Sony hasn’t said why it wants the deal, but it’s not hard to guess the motives, according to industry analysts to predict The number of TV deliveries will grow by less than one percent in 2026 to believe Sony’s market share lags behind Xiaomi’s 5.8 percent.
Sony seems to think its resources can be put to better use than cutting perhaps 10 million TV sales a year, and that it can’t chase market leaders Samsung, TCL, Hisense, LG and Xiaomi.
To understand TCL’s motives, consider that Chinese automakers have acquired established Western brands to help boost their exports and avoid competing primarily on price. The registry thinks the Bravia brand can help TCL sell more TVs outside China, as well as more high-end products. ®
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