Sony hands over control of its smart TV business to TCL
By ForGeeks
One of the best-known brands in the TV market is actually giving up its position, with Sony announcing a new partnership with TCL, in which it will be the Chinese company that will take the lead.
Sony has announced a new partnership with TCL, in which the Chinese company will take the lead.
According to an official press release today, Sony and TCL have entered into a «strategic partnership» involving a joint venture. It is scheduled to launch next April. It is not about equal distribution of influence: TCL will receive 51% and will become the controlling party, while Sony will get the remaining 49%. The companies specify that the final legally binding agreement is scheduled to be signed by March. The new entity will be responsible for product development and design, manufacturing, sales, logistics and customer service worldwide.
From Sony’s perspective, the move seems logical. Despite its rich history in the TV segment, the company is now active in virtually all areas of consumer electronics, as well as dominating the anime industry through its ownership of Crunchyroll. TCL, for its part, is one of the largest TV manufacturers in the world and continues to grow its market share. TCL also produces display panels itself, both for itself and for third-party companies through TCL’s CSOT division — an area in which Sony has no presence at the moment.
The companies said in a joint statement that «the new company plans to grow the business by building on Sony’s high-quality picture and sound technologies developed over many years, brand value and management expertise, including supply chain management, while leveraging TCL’s advanced display technologies, global scale, industrial base, end-to-end cost optimization and vertically integrated supply chain».
Simply put, it’s about combining Sony’s heritage, brand and management expertise with TCL’s manufacturing capabilities and its cost advantages. The Bravia logo won’t go anywhere and will continue to be used in new products alongside the Sony brand. The joint venture is also likely to retain its partnership with Google, given the two companies’ close ties to the Android TV and Google TV ecosystem.
