Panasonic is pulling out of the TV market. The company will instead focus on creating LCD displays for devices such as Apple's iPad, claims Japanese site, Diamond Online [via Apple Insider].

According to that report, building LCD panels for portable electronics is much more profitable.

If the report is correct, it calls into question suggestions that Apple will build its own smart TV. Analysts have already suggested that the Apple television will make little money for Apple because it just won't be able to enjoy the healthy gross margins that it is use to, and that Apple just doesn't have space in its Apple Stores for a television. Other problems include the difficulties in coming to an agreement with TV providers who are against giving technology companies control of the content.

Another reason for Panasonic's decision to pull out of the TV market could be to enable it to dedicate itself to building a television for Apple. 

Follow Karen Haslam on Twitter / Follow MacworldUK on Twitter

Related:

Analyst says Apple doesn't have space for television

Analysts discuss Apple's future, mini iPad, TV, killing the iPhone, and Jobs' legacy

Apple wins "extraordinary" 5D television patent including virtual reality gloves and interactive gaming

Cook at D10: Apple Television, gaming, Siri, Ping and more

Apple television will make little money for Apple investors, report

Apple TV set-top box may be a dead end