Toshiba Quits U.S. TV Market, Licenses Name To Taiwan’s Compal

(Bob)

Toshiba will be leaving the U.S. market for televisions, but you’ll still be able to buy a Toshiba TV later this year. Confused? Like other brands in the TV market, the company will license its name to Compal Electronics. TVs made by Compal will hit shelves starting in March.

While you may not have heard of Compal, it’s possible that you’re reading this post on a laptop computer or desktop monitor manufactured by them. They manufacture computers for more familiar names like Dell, Compaq, HP, and… Toshiba.

Toshiba blamed the “harsh price competition” in the television market for their struggle to turn a profit from selling TVs in North America. It will also seek similar licensing agreements with another manufacturer for its television products in other countries. Instead of bothering with the television business, the company will simply rent out its name to Compal. This could work out badly if Compal sells subpar televisions.

Our alert colleagues down the hall at Consumer Reports had the same question that we did: who will handle repairs and distribute parts for Toshiba TVs sold under the older regime? Toshiba will continue to sell computers in the United States, so it may be able to provide service and sell remaining parts through that operation.

Toshiba gives up selling TVs in the U.S [Consumer Reports]

by Laura Northrup via Consumerist