Second-tier LCD monitor OEMs facing increasing challenges in 2012, say sources

Second-tier LCD monitor OEMs will face increasing challenges in terms of shipments in 2012, as the top-2 OEMs - TPV Technology and Foxconn Electronics - combined are expected to take up orders for 90-100 million OEM monitors in the year, while brands such as Samsung Electronics and LG Electronics will continue to produce a high portion of monitors in house, according to industry sources.

Global LCD monitor shipments reached 170 million units in 2011, of which 60 million units were shipped by TPV, said the sources, adding that TPV is expected to ramp up its shipments to 65 million units in 2012, in which global shipments are likely to stand at the same level recorded in the previous year.

Foxconn has stepped up its efforts to compete for OEM monitor orders recently, since it has completed the integration of its OEM LCD TV unit with Chimei Innolux's (CMI's) OEM monitor business, according to industry sources. After taking up CMI monitor business, Foxconn is expected to ship 30 million OEM monitors in 2012 as compared to 23.4 million units shipped by CMI in 2011, the sources estimated.

Taking Samsung's and LG's monitor shipments of 24.2 million units and 15 million units, respectively, into account, the four makers TPV, CMI (Foxconn), Samsung, and LG actually took up over 72% of global monitor shipments in 2011, the sources revealed.

The dominance of a few top makers in the monitor segment has squeezed the operations of second-tier vendors and OEM makers, with a number of them to have encountered losses, said the sources.

LCD TV and monitor maker Jean has been unable to make a strong rebound in business in recent years although it has received capital investment from China-based BOE Technology, indicated the sources, noting that Tatung has also swung into red recently under keen competition.

Although Qisda shipped 16 million monitors in 2011 and took the fourth-ranked title in the segment, the company has shifted more focus on to the production of portable end products, specially designated monitors, in-car devices and projectors due to low profit margins generated from the production of LCD monitors, the sources revealed.

Source : digitimes

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