Electronics behemoth Sony has stunned channel partners worldwide with its surprise exit from the small form factor LCD display market.
Sony told CRN that from December this year it will no longer manufacture LCD computer displays smaller than 24inches.
Mark Lufkin, divisional director for IT peripherals at Sony, said that increased commoditisation and decreasing margins had forced it out of the sector.
"For VARs there is a market to continue selling such products, but just from another vendor," he said. "We are sorry, but it will hit those partners selling just Sony LCD computer displays hardest."
Lufkin added that Sony will continue to offer end-user services and support for LCD computer displays past December, but declined to say how many employees would be affected by the move globally.
Kevin Wragg, business unit manager at distributor Computer 2000, told CRN that sales of computer displays have become more competitive than ever this year.
"If the product isn't the differentiator for the reseller, then it has to be the price, and the price just keeps dropping. I wouldn't be surprised if Sony isn't the first of many vendors to consolidate in this market," he said.
"It leaves a gap for us and was an important revenue generator for us. We will need the missing revenue to be picked up by a rival vendor that we carry already, rather than loose the revenue altogether."
John Cooper, managing director at VAR JKC, told CRN: " Sony is getting a lot of competition. Rival vendors have moved in to threaten Sony's monitor business."
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