Canon and Toshiba to Delay Launch of SED TV (CAJ)

Reuters Tokyo reported today that Canon (CAJ) and Toshiba (Tokyo Stock Exchange ticker: 6502) have postponed their launch of a new type of flat, thin screen TV by more than a year. The surface-conduction electron-emitter display, better known as SED TV was due to be for sale this spring but now won't be launched until Q4-2007. The main reason for the delay is to improve cost competitiveness since the current flat screen thin panel display TVs on the market (LCD and plasma) have experienced increasing price erosion, which naturally would put newcomer SED at a disadvantage.

Compared to current LCD and plasma models, SED panels are thinner and consume less energy. Mass production of SED panels is expected to begin in July 2007. It's interesting despite the "better" technology, Toshiba and Canon have committed only 200 billion yen (US$1.7b) to SED development and production. That amount, as the Reuters article points out, is "dwarfed" by the investments made earlier this year and previously by Sharp (SHCAY.pk) and Matsushita (MC). SED will also face competition from Korean manufacturers, Samsung (which has a joint venture with Sony) and LG-Philips.

The announcement was made after the market closed in Japan. So far in today's trading in the U.S., Canon's ADRs are down 2.35%, obviously a negative reaction to the delay. Canon's ordinary shares in Tokyo did trade lower today, down 1.08% at closing.

CAJ 1-yr chart:

Toshiba 1-yr chart: