Sharp stopped making TVs primarily due to financial difficulties. Despite being a pioneer in LCD technology and introducing LCD TVs to the consumer market, the company struggled to compete in an increasingly competitive and saturated market.
One of the main reasons for Sharp’s TV business decline was the intense competition from other manufacturers, particularly from South Korean companies like Samsung and LG. These companies were able to produce high-quality TVs at lower prices, making it difficult for Sharp to compete on price alone. Additionally, their strong brand presence and aggressive marketing strategies further eroded Sharp’s market share.
Sharp also faced challenges in adapting to changing consumer preferences and technological advancements. With the rise of smartphones and tablets, the demand for traditional TVs started to decline. Consumers began to prioritize portable and on-the-go devices, shifting away from the traditional living room TV setup. Sharp struggled to keep up with this changing trend and failed to innovate quickly enough to meet consumer demands.
Furthermore, Sharp’s financial troubles exacerbated the situation. The company faced significant debt and struggled with profitability in its TV business. In 2015, Sharp reported a net loss of $1.9 billion, and its TV division was responsible for a substantial portion of this loss. The company’s financial instability hindered its ability to invest in research and development, marketing, and other necessary resources to stay competitive in the TV market.
As a result, Sharp made the difficult decision to gradually withdraw from the TV manufacturing business. In 2016, the company sold its TV manufacturing plant in Mexico to Hisense, a Chinese electronics company. Sharp also entered into a licensing agreement with Hisense, allowing them to use the Sharp brand for TVs sold in the Americas. This move allowed Sharp to reduce costs and focus on its more profitable business segments, such as display panels and home appliances.
Sharp stopped making TVs due to a combination of factors, including intense competition, failure to adapt to changing consumer preferences, and financial difficulties. While the company’s legacy as an LCD technology pioneer is significant, the challenges it faced ultimately led to its decision to exit the TV manufacturing business.