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Taiwan's LCD TV contract makers may see annual shipment decline for first time this year.

Taipei, Aug. 8, 2012 (CENS) -- Dampened by a slack global economy, Taiwan's annual LCD TV shipment by contract manufacturers is estimated to drop, for the first time ever, by 13-16% year on year to only between 37 million and 38 million units this year, according to WitsView, a global market researcher.

The latest statistics issued by WitsView show that Taiwanese contract manufacturers shipped a total of 8.58 million LCD TVs in the second quarter of this year, up 12.5% from a quarter earlier. Although projecting the quarterly shipment growth to surge further to 25% in the third quarter, the market researcher opines that shipment volume for the whole year will drop year-on-year to the said forecast for some reasons.

Aside from a gloomy global economy, WitsView pointed out that the persistently sagging LCD TV sales by Japanese brand vendors worldwide have also undermined Taiwanese contract manufacturer's shipments, given the fact that around 65% of their contract orders are from Japan. The market researcher noted that Japanese brands had together commanded over 30% of the global market before 2011, but saw their overall market share shrink to 29% last year due to growing competition from Korean rivals. This year, the rate is expected to decline further to 22-23%.

Furthermore, the rise of smaller-sized contract manufacturers in China is also among the reasons behind WitsView's pessimism about Taiwan's LCD TV shipment decline to be first seen this year. The market researcher indicated that Chinese makers are expected to ship increasing LCD TVs to command a 13.4% share of the global market in 2012, compared to a 9.9% share they posted last year, which will certainly eat into the share by Taiwanese producers.

WitsView stated that TPV Technology Ltd. is expected to remain the world's largest LCD TV contract manufacturer by annual shipment of 13.5 million units, trailed by Vestel and Hon Hai Precision Industry Co., Ltd. with 10.5 million units and 6.8 million units, respectively. Among Taiwanese makers, Compal Electronics Inc., Amtran Technology Co., Ltd., Wistron Corp. and Pegatron Corp. are estimated to achieve shipment of 5.8 million units, 3.7 million units, 3.4 million units and 3.1 million units, respectively.

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Author:Chuang, Steve
Publication:The Taiwan Economic News
Geographic Code:9TAIW
Date:Aug 8, 2012
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