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Panasonic to Miss Mid-Term Revenue Target

Panasonic's three-year digital home growth plan is likely to remain largely on course, although it will fall short of its revenue target by $500 Million in 2010, according to the latest research from the Strategy Analytics "Connected Home Devices" service.

The report, "Panasonic's AV Strategy: Plasma Success Will Not Prevent Revenue Shortfall," suggests that the company will meet its target for sales of plasma TVs, in spite of its overly optimistic view of future market growth. Panasonic's biggest challenge will be in Blu-ray Disc players, where it will struggle to achieve its targeted sales.

"Panasonic is right to target plasma and Blu-ray Disc as revenue growth opportunities," says Peter King, Service Director and author of the report.

"Our own analysis, however, indicates that the company's market projections are out of line with realistic medium-term forecasts. Plasma TV markets in particular will fail to meet Panasonic's expectations, although it is likely to achieve its revenue targets by winning substantially higher market share than Panasonic predicts."

Another market analyst told me this afternoon that low-cost Chinese consumer electronics (CE) manufacturers, aggressively seeking to gain market share, will be the most likely market disrupter.

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