Taipei, Friday, April 29, 2016 06:39 (GMT+8)
partly cloudy
Taipei
24°C
Qisda to phase out LCD TV OEM business
Siu Han, Taipei; Yvonne Yu, DIGITIMES [Friday 24 October 2008]

With Qisda and AU Optronics (AUO) announcing a joint venture for LCD TV assembly in September, Qisda has now stated that all aspects of its LCD TV OEM business will be transferred to the new venture and Qisda will exit from the LCD TV business.

Hui also explained that LCD TV OEMs need to maintain higher panel inventory and having an expertise in LCD panel production is a key advantage in such a business. Therefore, the company will allow AUO to control the direction of development for the two company's combined LCD TV production. Hui added that Qisda currently lacks the economies of scale to further devote resources to the LCD TV business, so Hui believes that it is best for Qisda to phase out its LCD TV OEM business. The company estimates that LCD TV OEM services will not be a part of its operations in 2010, added Hui.

Qisda's LCD TV OEM business only accounted for 6% of its third quarter sales and only 4-5% of the company's sales so far this year. Hui indicated that the company's LCD TV OEM shipment goal this year may only reach 600,000-700,000 units, down from a previous shipment estimation of one million units.

Hui also noted that Qisda has started to transition LCD TV OEM production lines to producing and new products this quarter and the company estimates that the new products will contribute more than 10% to the company's annual revenues in 2009. The new products include professional display, electronic billboard, all-in-one PC, 3.75G USB modem, portable digital TV, and remote medical care applications.

Qisda's third quarter consolidated revenues reached NT$27 billion (US$807 million), down 11.3% from NT$30.5 billion in the second quarter. The company's gross margin increased from 3.4% in the second quarter to 3.8% in the third quarter, but net losses still totaled NT$1.9 billion, according to data from the Taiwan Stock Exchange (TSE).

Hui Hsiung, president of Qisda

Hui Hsiung, president of Qisda.
Photo by Siu Han

Realtime news
  • Cypress subsidiary Deca to receive US$60 million investment from ASE

    Bits + chips | 9h 17min ago

  • Digitimes Research: Taiwan makers ship 7.35 million LCD TVs in 1Q16

    Displays | 9h 49min ago

  • Macronix posts another quarter of losses

    Bits + chips | 9h 51min ago

  • Digitimes Research: Woskan, iStaging developing VR for use in real estate marketing

    Before Going to Press | 9h 37min ago

  • Transcend 1Q16 net profits fall 25%

    Before Going to Press | 9h 40min ago

  • Senao Networks nets NT$3.21 per share for 1Q16

    Before Going to Press | 10h 7min ago

  • China sets 2020 targets for robot industry development

    Before Going to Press | 10h 8min ago

  • Nintendo to stop production of Wii U in March 2018

    Before Going to Press | 10h 9min ago

  • Chip orders for iPhone SE rise in 2Q16

    Before Going to Press | 10h 10min ago

  • Global Lighting Technologies nets NT$1.33 per share for 1Q16

    Before Going to Press | 10h 14min ago

  • AUO sees rebounding operations in March, says chairman

    Before Going to Press | 10h 15min ago

  • Motech Industries lowers price for new shares issued for capital expansion

    Before Going to Press | 10h 16min ago

  • Gamania Digital Entertainment nets NT$0.12 per share for 1Q16

    Before Going to Press | 10h 16min ago

  • Danen Technology suffers net loss per share of NT$0.21 for 1Q16

    Before Going to Press | 10h 18min ago

  • Notebook-use thermal module makers step into server applications

    Before Going to Press | 10h 19min ago

  • Giantplus Technology posts 1Q16 net EPS of NT$0.30

    Before Going to Press | 10h 20min ago

  • Adlink nets NT$0.26 per share for 1Q16

    Before Going to Press | 10h 21min ago

Pause
 | 
View more
China smartphone touch-panel industry 2016 forecast
Display panels for wearable devices
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.