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More and more brand names are shifting to external manufacturers to make their LCD TVs for them.
Displaysearch that 25 percent of LCD TVs that shipped in the first quarter of this year were manufactured by OEMs including Amtran, Compal, Grundig, Jabil, TPV and Wistron.
While the top 10 brands generally make their own LCD TVs, Vizio outsources 100 percent of its production, while Philips, the Dutch company, outsourced 62 percent of the LCD TVs it shipped in the quarter.
The trend is set to grow, said Deborah Yang, director of monitor and TV markets at Displaysearch. “The outsourcing ratio is likely to increase to 30 percent or more in 2010.” But, she added, shortages in the supply of panels for LCD TVs had an effect on panel prices and allocation. “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 panels is a critical point for LCD TV OEM business success”.
This graphic from Displaysearch illustrates the trends to outsource in the LCD TV market.
And this pie chart from Displaysearch shows which OEMs are the beneficiaries of the move to outsourcing.