Toshiba has announced that it is halting production of LCD TVs in its home country of Japan due to falling demand, making it unfeasible to continue. This doesn't mean however that Toshiba will no longer be producing the Regza televisions, just that they will only be made in the international fabrication plants located in Egypt, Poland, China and Indonesia.
While some initially pointed the finger at the current exchange rate for Toshiba's decision, a spokesperson for the firm said that while the current high value of the yen does affect business, it wasn't a consideration during the decision making process.
One of the major contributors to the local shutdown is most likely increased global competition. Both Sony and Toshiba have been feeling the pinch with their TV production, with South Korean companies like Samsung - and potentially America's Apple later this year - squeezing the marketplace.
This move is part of Toshiba's grand plan to increase profitability over the next three years to $5.6 billion, with much of the focus being put into social features and increased sales of electronics.
After the announcement for the national TV production shut down, Toshiba's shares jumped 5.6 per cent. Evidently this is welcome news for stock holders, who no doubt see increased profitability once the less than stellar Japanese production is halted.