Canon, Toshiba to delay SED new flat TV launch again

TOKYO (Reuters) - Canon Inc. and Toshiba Corp. have decided to postpone the launch of SED TVs for the second time, the Japanese companies said on Friday, raising doubt over the commercial viability of the new flat televisions.

The two companies, which already delayed the debut of the SED TVs once last year, are now postponing the launch from the final quarter of 2007 to an unspecified later date.

Canon, the world's top makers of digital cameras, copiers and laser printers, cited a prolonged patent lawsuit with Nano-Proprietary Inc. as a reason for the delay.

It is also putting off the launch to develop the technology to cut production costs, a step necessary to compete with liquid crystal display (LCD) and plasma TVs.

Toshiba, which plans to procure SED panels from Canon, is postponing the TV launch as Canon is unable to start supplying the panels on time.

The new launch timing has yet to be decided, they said.

The global flat TV market is staging explosive growth as people trade in bulky tube TVs for sleek LCD and plasma models. But the industry is also known for multi-billion dollar investments and steep price declines, keeping the barrier high for new entrants.

SED (surface-conduction electron-emitter display) TVs are said to have brighter images and consume less energy than existing LCD and plasma models.

But analysts are concerned that SED TV suppliers, which do not even have large-scale production facilities at the moment, are likely to face an uphill battle in bringing down prices fast enough to compete with established flat TV makers such as Sony Corp. and Samsung Electronics Co. Ltd..

Despite the delay, however, both companies said they have no intentions of abandoning plans to offer SED TVs.

"We still plan to offer SED TVs as soon as we secure panel supplies," a Toshiba spokeswoman said.

Prior to the announcements, shares in Canon closed down 2.0 percent at 6,980 yen, while Toshiba slipped 0.6 percent to 895 yen. The Nikkei average lost 1.22 percent.