Taipei, Thursday, October 19, 2017 13:47 (GMT+8)
cloudy
Taipei
25°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
  • HTC to introduce new smartphone in November

    Mobile + telecom | 33min ago

  • Will Mong-song Liang face another trade secrets lawsuit?

    Bits + chips | 58min ago

  • Taiwan makers all set for mini LED

    LED | 1h 36min ago

  • TSEC to produce half-cut PV modules

    Green energy | 1h 58min ago

  • MediaTek to post slight decrease in 4Q17 revenues

    Bits + chips | 2h 10min ago

  • Samsung completes qualification of 8LPP process

    Bits + chips | 2h 26min ago

  • Graphics card demand remains robust due to cryptocurrency mining

    Before Going to Press | Oct 18, 21:07

  • Genius Electronic denies clients returned lens module shipments

    Before Going to Press | Oct 18, 20:26

  • Audix to ramp up shipments of VCM components

    Before Going to Press | Oct 18, 20:23

Pause
 | 
View more
Global notebook shipment forecast, 2017 and beyond
Global AP demand forecast, 2017-2020
Global notebook shipment forecast, 2017 and beyond
  • China AMOLED panel capacity expansion forecast, 2016-2020

    This Digitimes Research Special Report examines the China AMOLED industry, focusing on the expansion capacity of the makers, the current implementation plans of major smartphone vendors in the market and the technological hurdles faced by the China makers.

  • Taiwan server shipment forecast and industry analysis, 2017

    Digitimes Research estimates that revenues from sales of server motherboards, servers, storage systems and related network system equipment by Taiwan-based vendors reached NT$555.8 billion in 2016 and the amount is estimated to grow 5.9% on year in 2017.

  • Global notebook shipment forecast, 2017 and beyond

    This Digitimes Special Report examines key factors in the notebook industry, including products, vendors and ODMs, that will affect total shipments in 2017 and through 2021.