Tokyo — Toshiba officially revealed Thursday that it is getting out of the TV manufacturing business in North America and has licensed the brand to Taiwan’s Compal Electronics for the category.
As we reported prior to International CES, Toshiba opted not to produce any new TV models for introduction in the North American market at CES earlier this month, as it reassessed its continued involvement in the category.
At the time, sources told TWICE that the company was exploring licensing the brand to another company for the line.
Toshiba now confirms those reports, saying that the Toshiba Visual Products business has undergone a “fundamental restructuring,” adding that the new business structure under Compal will begin to deliver products to North America in March. The company will also license the brand for TV in other markets outside of Japan shortly.
“Toshiba has responded to shifts in the North American TV market with value-added products, including large-screen and smart TV with Cloud Portal, and also taken steps to cut costs and boost profitability by reducing platforms and reducing employee head count. However, as the growth of the market is slowing down, and continues to see harsh price competition, Toshiba has decided to build a new business structure,” the company said in a statement.
Going forward, Toshiba said it will look to stabilize profitability by producing new technologies and services across diverse business fields.