14.01.11

LCD TV makers cut output as shipments rise

LCD television brands have adjusted production plans downward for the first quarter of 2011 despite strong sales at the end of 2010, according to DisplaySearch.

The research body said the top 16 LCD TV brands, including global brands, such as Samsung and regional players like Konka in China, had reduced their combined monthly production plan from 18.3 million in November 2010 to 15.4 million units in March 2011. Overall, production in the first quarter of 2011 is forecast to be 46.3 million units, a 12% quarter on quarter decline from the last quarter of 2010.

“The unstable market environment in many regions is creating uncertainty regarding TV demand. Despite this, some TV brands reportedly are increasing production quantities in January 2011 because of demand anticipated from Q1 product launches,” noted Deborah Yang, research director of Monitor and TV for DisplaySearch.

Despite the cautious stance of the TV brands, LCD TV sub-contract manufacturing (OEM/ODM) companies are increasing their monthly shipments from December 2010 to March 2011. This indicates that TV brands are increasing outsourcing manufacturing to OEM/ODM companies, which is driven by cost management, logistics, manufacturing scale, and in some cases, access to panel supply.