Sony cans LCD monitors

Sony will stop making LCD computer monitors by Christmas, saying rising manufacturing costs have made it impossible to make a profit.

In a surprise move, the company will stop making any LCDs under 24in, except for speciality monitors for niche business sectors. It will also continue making larger public-display LCDs.

Sony commanded only a 2.5 per cent share of the European PC LCD market, so was a relatively small player. It was expected to sell around 1.2 million LCD monitors this year, and although Sony claimed to be ahead of targets, it was unable to make a suitable profit from the business.

All warranties will be honoured for their lifetime, Sony confirmed.

This is a further blow to Sony, which last week admitted that it would delay the European launch of its Blu-ray enabled Playstation 3 until next spring.

Bravia LCD TVs, which can connect to computers and act as a display, are unaffected by the decision. Nor are its Vaio desktop computers, which sell relatively few units compared to tier one PC manufacturers, because these now ship without monitors.

Sony does not manufacturer the panels themselves, instead using third parties such as Samsung. This means it has no control over the cost of the panels, but is expected to be competitive online or in shops, where prices are dropping.

It has ruled out rebadging a third party’s displays, citing “quality” concerns. Andrew Barrow, Sony’s senior European product manager, said: “We’re not going to rebadge other displays. It would not make sense for Sony as a brand to take third-party products.”

Last year, an expected burst in LCD TVs sales meant more panels were produced. But lower than anticipated sales led to a glut of panels and a subsequent reduction in their manufacture.

Retail sales then picked up, leading to a shortage of panels and forcing up their price to the likes of Sony. But retail prices continued to drop, and Sony has now said it cannot compete in this sector.

PCW was close to finishing tests on its latest LCD display, the 19in SDM-G96X, a 2ms monitor costing £250. That is still likely to be released, said Barrow, although with limited availability.