InFocus Laying Off Workers and Restructuring

[Audioholics]

In a sudden flurry of activity that left our minds spinning, InFocus Corp. stated today that it will be lowering its operating expenses by 20 to 25 percent, including layoffs. In addition, two of its top executives are leaving the company. InFocus has decided to eliminate it's poorly marketed thin-screen display line. Apparently, even though the thin DLP products were hot items at trade shows they had not done nearly as well as the company had projected. That sort of thing unfortunately tends to happen when you fail to adequately promote a product - regardless of how impressive it is. Read the press release for the full information.

[Read the Press Release]

 

[ArizonaDoug]

Doesn't seem like a promotion problem to me

I took a look at their most recent financial report. Unit shipments were up over last year but average selling prices had fallen significantly. Clearly, InFocus is not immune to the almost-impossible task of making profit in the current consumer electronics environment. I don't see how their financial troubles relate to lack of promotion - instead, I see an industry where very, very few companies can be profitable.

 

[Audioholics]

In particular, no one I know of ever heard of their DLP TVs - though nearly EVERYONE I know shopping for a TV would have bought one since it combined a DLP picture with the ideal flatness of a plasma/LCD screen.

Now they are dumping the line.

 

[Hans]

They might have found the solution

Well, imho, Infocus might have done the right thing.

I do believe, with all the technologies available, it is ridiculous that I can not buy directly from the Infocus Website as my american neighbors do. That particular situation, for me, pretty much sums up the current problems of the company.

Hailing from NB, Canada, i've always find it difficult to try Infocus products. You only hear great things about Infocus products especially their projectors, but word of mouth only goes so far in this overmarketed world. Overall, I think their distribution network is currently inadequate, especially for a consumer electronic manufacturer. Ok, it's was geared toward a very specific market, and that was adequate in the past. But in a world where the megachains like Costco and Best Buy carries most popular brands of projectors, it's simply not true anymore.

They really had 2 choices: shotgun approach, or focus aim. I do believe they made the right choice by focusing on their already successful products(i.e. projectors) instead of going broad and face tha giants of that world. (Audioholics Infocus preview at CEDIA had me drooling) I am also pleased to see that they will change their business structure from products to operations. It should be better for that type of business as it consolidate efforts, ...if they do it right.

 

[RLA]

In particular, no one I know of ever heard of their DLP TVs - though nearly EVERYONE I know shopping for a TV would have bought one since it combined a DLP picture with the ideal flatness of a plasma/LCD screen.

This was a major contributing factor not only was this not marketed but
Infocus had two different prices for dealers and two different product lines for the same TV. More than a few dealers have been disappointed with Infocus The custom A/V market is a very large % of sales and it was drying up quickly. Selling projectors Internet direct may not be a sound business model They would loose all their dealer distribution overnight I would suspect that only a very small % would buy projectors factory direct, who would install them? There are not enough DIYer's out there to make it work.
Infocus lost a lot of their dealer base when they promised dealers a cost effective projector, the 4805 then started distributing to Costco. Dealers and Installer could go to Costco and buy the 4805 for over $100 less than buying them from Infocus