Toshiba to outsource LCD TVs to China-based Konka
Siu Han, Taipei; Yvonne Yu, DIGITIMES [Monday 18 October 2010]
digitimes.com
Toshiba plans to increase its LCD TV outsourcing to 10 million units in 2011 and is reportedly to outsource 700,000 LCD TVs to China-based TV maker Konka for the Middle East and South America markets, according to market sources.
Toshiba has been controlling its production costs though outsourcing LCD TVs to Taiwan-based manufacturers, and the vendor is expected to ship 15 million LCD TVs in 2010, accounting for 7% of the global LCD TV market.
Eyeing the potential of China's LCD TV market, Toshiba announced plans to set up a joint venture with China-based LCD TV vendor TCL for OEM and sales business with a capital of 50 million yuan (US$7.52 million). Toshiba has a 51% stake in the joint venture. Toshiba plans to expand its sales offices to 10,000 sites in China by the end of 2012 and increase its market share to 5% in 2015, from 2% currently.
Japan-based LCD TV vendors such as Sony and Toshiba continue to increase their outsourcing in order to lower production costs. Toshiba's outsourced orders accounted for about 30% of its total shipments in 2009, an the company is expected to ship 15 million units in 2010, of which about 50% will be outsourced. For 2011, Toshiba's outsourced orders are expected to reach 10 million units, which is about 70% of the vendor's total shipments. Compal Electronics will remain as Toshiba's largest manufacturer and mainly produces mainstream models, TPV Technology will mainly produce models for Europe. AU Optronics' (AUO's) subsidiary BriView Electronics has reportedly landed orders from Toshiba for 2-3 million units. |
