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Electronics Production | July 09, 2009

Outsourcing of LCD to OEMs/EMS will increase 30% in 2010

25% of LCD TVs shipped in Q1’09 were made by external OEMs/EMS such as AmTRAN, Compal, Grundig, Jabil, TPV and Wistron, up 1% Q/Q.

The top 10 TV brands mostly manufactured their LCD TVs in house, with the exception of Vizio, which outsourced 100%, and Philips, which outsourced 62% of their LCD TVs shipped in the quarter. As the LCD TV market becomes commoditized, many brands plan to increase their LCD TV outsourcing for specific regions and products to build market share and optimize the total supply chain cost going forward. “The outsourcing ratio is likely to increase to 30% or more in 2010,” noted Deborah Yang, DisplaySearch Director of Monitor and TV Market Research. “However, shortages in LCD TV panels impacted panel prices and allocation for TV manufacturers.” Yang continued, “LCD TV brands, as well as OEMs will need to pay higher prices to ensure that they have an adequate panel supply. Supply of LCD TV panels is a critical point for LCD TV OEM business success.” This image is not part of this article.
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