Just days after unveiling a Sony-branded Internet TV with Google, Sony's chief executive is set to meet rival Samsung Electronics, for possible alliances.
Today's closed-door meeting between Sony CEO Howard Stringer and Samsung's Lee Kun-hee, is the first since Lee returned as chairman of the South Korean technology powerhouse in March.
Sony has described this one of its regular and traditional discussions with flat-screen partner Samsung.
The meeting is widely seen by analysts as a move by Sony to address tight LCD supplies for TVs, but Samsung may also seek alliances with Sony to set up a common standard in 3D technology, the next big thing that many electronics firms are betting on.
"It's mainly aimed at Sony rebuilding and consolidating its relationship with Samsung because its strategy of diversifying panel suppliers to the likes of Sharp has failed to ensure smooth supplies," said Ricky Seo, an analyst at KB Investment & Securities.
"So, it's like Sony coming back for more cooperation as it needs Samsung to meet its aggressive promotion of TV business, especially to get advanced panels for 3D TV production."
Sony has had a LCD joint venture with the Korean firm since 2004. Last year, it however announced a separate venture with Japan's Sharp with 68 billion yen investment plans to take a one third stake by next year.
Sony and Samsung compete in many areas such as TVs, mobile phones, laptops and digital music players but the Japanese firm is also the biggest buyer of Samsung's LCD displays for TVs.
"We meet all the time because we have a joint venture. We are pals. So we get to negotiate or discuss the joint venture a lot, and it was one of those meetings," Mr Stringer said last week.
"It's a traditional meeting... But it was not a big meeting, it's a regular meeting."
Ensuring smooth supplies of LCD panels is key for Sony to turn its TV business profitable for the first time in seven years this year and to boost its Bravia flat TV sales by 60 per cent to 25 million units in the year to March 2011.
Global shipments of LCD TVs jumped 50 per cent in the first quarter to 40.6 million units from a year ago, but Sony's market share slipped to 9.2 per cent, trailing Samsung with 18.3 per cent and LG Electronics with 12.7 per cent, according to DisplaySearch.
Reuters