Panasonic sells US and European TV business to China’s Skyworth, signals major shift in global TV strategy

Panasonic has signed a comprehensive partnership agreement with China’s Skyworth Group that will see the latter take over television sales operations in North America and Europe starting April 2026. The move, announced at Panasonic’s 2026 TV launch event, is aimed at improving profitability in a struggling TV business by cutting fixed costs and sharing development and production resources. Panasonic will continue to sell TVs in Japan, while Skyworth will lead sales, marketing, logistics and manufacturing in Europe and the US.

Panasonic Skyworth partnership details

As per the agreement:

• Skyworth will manage sales, marketing and logistics for Panasonic-branded TVs in Europe and North America.
• Skyworth will manufacture the TVs for those regions.
• Panasonic will continue to provide audiovisual expertise and quality assurance.
• Both companies will jointly develop top-end OLED models.
• Panasonic will continue after-sales support for all TVs sold up to March 2026 and for models launched from April onwards.

Panasonic confirmed that TVs will continue to carry the Panasonic brand and incorporate its proprietary picture tuning and processing technologies. The transition will happen region by region.

The company is targeting a double-digit market share in Europe under the new structure. In other Asian markets, Panasonic said it will explore locally optimised strategies, including potential deeper collaboration with Skyworth.

Peter Zhang, CEO of Shenzhen Chuangwei-RGB Electronics, Skyworth’s holding company, said the partnership will bring ‘world-class product innovation supported by extensive R&D investment, alongside a rapidly expanding international footprint and established distribution network.’

Skyworth is the world’s third-largest OLED TV manufacturer due to its home market business.

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Additional context and why this deal matters

Panasonic’s TV business has faced mounting pressure from Chinese brands in recent years. Because of this, the company had previously outsourced production of entry-level and mid-range models to partners, including China’s TCL Group. The new agreement with Skyyworth looks like an extension of that approach.

The Panasonic Skyworth partnership follows a similar strategic shift by Sony, which announced in January that it would outsource its TV manufacturing to a joint venture led by TCL. Other Japanese brands such as Sharp and Toshiba have already transferred control of their TV operations to foreign companies, underscoring a broader structural change in the global TV industry.

For Panasonic, the deal reduces exposure to intense price competition in Europe and the US, while allowing it to focus on high-end, higher-margin models in Japan and other lucrative markets. It announced the Z85C or Z86C OLED TV this year, and prevailing flagship models such as the Z95B and Z90B will carry over for now. Panasonic has indicated that more announcements are expected later this year, suggesting that its premium OLED strategy remains intact despite the operational shift.

For buyers in Europe and North America, Panasonic TVs will remain available under the same brand, but production and distribution will increasingly be handled by Skyworth. The success of the partnership will depend on whether Panasonic can maintain its established picture quality reputation while leveraging Skyworth’s scale to remain price competitive in these markets. Let’s see.

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