How far can the hottest IT manufacturers go to the

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How far can it manufacturers go in OEM when they enter the flat-panel TV industry?

when the flat-panel TV industry has fallen into low profits or even losses, how many profit opportunities can Taiwan Hon Hai group and AOC TPV technology group enter the industry by OEM, and how far can they go in OEM? These questions are worth thinking about

recently, there have been two more manufacturers in the field of flat-panel TVs - Taiwan Hon Hai group and AOC TPV technology group. It is no longer for it manufacturers to enter the field of household appliances. It is noteworthy that these two new entrants are mainly engaged in OEM

Recently, TPV technology announced that Chen Chunlei, the former senior director of global procurement of Lenovo, and Liu Dan, the general manager of kangjiayuan tablet operation center and deputy general manager of multimedia marketing division, joined TPV. It is reported that Chen Chunlei will be the general manager of TPV's IT sales business in Asia Pacific, while Liu Dan will be the general manager of TPV's consumer electronics business in Asia. Industry insiders said: "this indicates that the cost and benefits of TPV technology, the Chinese monitor giant, are also different. An important step towards the strategic deployment of flat-panel TV has been completed."

according to xuwenxuan, general manager of TPV's own brand in China, Liu Dan will be mainly responsible for expanding and strengthening the LCD TV of TPV's own brand after joining TPV. The acquisition of Philips display business will become the best technical support for TPV technology to enter the LCD TV market. On the road of development, TPV still follows the idea of "making a fortune" of its display: OEM first, and then brand. "The ratio of TPV's own brand to OEM is about 3:7." Xu Wenxuan said, "at present, 10 brands have asked us to contract LCD TVs. In the future, we will vigorously develop our own brand products."

it is reported that in the past three years, TPV technology's display ranked second in the Chinese market, and its own LCD brand (AOC) currently has a market share of 25% in the mainland. In recent years, TPV technology has also OEM millions of LCD TVs. In the first quarter of this year, TPV shipped 600000 LCD TVs, accounting for 15.9% of the total turnover

before joining TPV, Liu Dan was responsible for Konka's domestic flat-panel TV business, including planning, R & D, procurement, manufacturing and sales. He achieved sales of 600000 units a year, sales volume of 3.1 billion yuan, and accumulated profits of more than 100million yuan. As a result, Konka's flat-panel market share rose to the top three

the joining of Liu Dan shows TPV's ambition to seize the LCD TV market. After taking office, Liu Dan said: "the demand of TPV's independent brand liquid for more practical and practical testing. The target sales volume of crystal TV in 2008 is 350000 archive material stations of outsourced equipment and instruments, and the annual sales volume will reach 1million units three years later. Five years later, it will occupy 3% of the domestic flat-panel TV market share and become a first-line brand in the market." Liu Dan said that it would be difficult for flat-panel TV enterprises to survive if their annual output was less than 6million-10million sets, and several well-known TV brands would withdraw from the home appliance market in the next five years

Hon Hai launched LCD TVs mainly for OEM

at present, Foxconn Technology Group, a subsidiary of Taiwan Hon Hai group, is starting to set up LCD TV production lines. Foxconn's entry into LCD TV is just the tip of the iceberg for Hon Hai to enter the LCD TV industry

receiving the OEM order for 26 inch LCD TV assembly from Vizio, an American brand, can be said to be the beginning of Hon Hai OEM LCD TV, while accepting the benchmark Sony 32 inch LCD TV order is regarded by the industry as a sign that Hon Hai has officially stepped into the field of flat panel TV OEM

it is reported that the 32 inch LCD TV manufactured by Foxconn for Sony has been shipped recently, and the 40 inch LCD TV OEM has also been certified, and it is expected to be shipped next year. According to Foxconn insiders, the LCD TV production line in Foxconn's factory in Longhua, Shenzhen is being set up on a large scale. According to Hon Hai's practice of never having inventory, whether the production line will be expanded will depend on the situation of "taking orders". "That is to say, build the production line first, and then talk about the ability of 'taking orders' with brand enterprises."

Hon Hai has not only arranged a subsidiary of Foxconn to produce LCD TVs, but its LCD panel manufacturer qunchuang optoelectronics has also moved from operational research to production implementation. Xujiacheng, a spokesman for qunchuang optoelectronics, said that the LCD TV production line being built by the company is located in Longhua, Shenzhen. The first batch of mass production will be carried out in the fourth quarter of this year. In the first year, the production capacity is expected to be less than 1million units. It is planned to negotiate with the brand manufacturers about "taking orders" after shipment. "After mass production, there will be customers. Qunchuang still doesn't do its own brand, but only OEM." Xu Jiacheng affirmed

whether OEM can last for a long time

entering an industry at a time of low profits is the usual business logic of OEM enterprises in Taiwan for many years. When Hon Hai group and TPV technology completed their industrial layout in the LCD TV field step by step, domestic flat-panel TV manufacturers were caught in a protracted price war, and the flat-panel TV industry was now on the brink of low profits or even losses. At the same time, the rapid decline in the price of flat-panel TVs has led to the marginal profits of OEM factories. Whether they have the layout of large-scale manufacturing sites in the world has become the key to the profitability of OEM manufacturers

some experts in the industry are skeptical about the probability of IT manufacturers' success in entering the field of household appliances. Lu Renbo, an expert from the market economy Research Institute of the development research center of the State Council, said after learning about the move of TPV technology that it is not the strength of TPV technology alone that can change the current development status of the domestic LCD TV industry, nor is it Liu Dan alone that can help TPV technology successfully enter the LCD TV market from the display market. "At present, the LCD TV industry is a competition between big and big. Only enterprises with large output can make profits and will not be defeated by low prices." Lu Renbo said, "according to my observation, many audio and IT enterprises have blindly entered the LCD TV market, but they have not developed well."

the second quarter report of 2007 consumer demand survey of China's flat-panel TV cities shows that in the first half of 2007, the domestic LCD TV sales were 3.3 million, but there were many brands, involving about 20, which were uneven. "The development of LCD TV needs channels, brands and technology, and none of them is missing," Lu said

when talking about TPV's own brand and OEM, while Foxconn and qunchuang optoelectronics mainly do OEM, Lu Renbo said: "I personally believe that as LCD TV enterprises and brands gradually mature, the development opportunities of LCD TV OEM enterprises will be less and less. Whether they enter the LCD TV market, the change in size is within the tolerance range. It is more short-term behavior in the infield, and OEM is not long-term."

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