Proview and Motorola have ended their alliance in the flat-panel TV segment. A statement was released attributing the split to a difference in opinion over product marketing strategy in North America, implying that a disagreement arose over which brand name would be used for the jointly-produced TVs. The TVs were originally expected to hit the market by the middle of 2004.

 

Proview also explained that the decision is connected to the slower-than-expected digitalization of China's TV technology, and what is generally regarded as an immature market. Proview's investment in R&D for the LCD TVs and plasma display panels was approximately HK$14.5 million (US$1.9 million, 1 USD = 7.8 HKD) for the year ended June 30, 2003, and HK$35 million (US$4.5 million) for the year ended June 30, 2004. However, the company believes that the R&D investment will still pay off as the technology it has developed can be applied to its own-brand and contract manufacturing businesses.

 

Around a year ago, Motorola announced that it was partnering with Proview to design and assemble flat-screen TVs using the Motorola brand name. Motorola planned to sell the TVs in North America, while Proview would sell them in Asia. Despite the rift over flat-screen TVs, Proview will continue to build and sell computer monitors under the Motorola brand in Asia.