Taipei, Thursday, October 2, 2014 01:46 (GMT+8)
partly 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
  • Percentage of 5.5-inch smartphone panels shipped to China increasing

    Displays | 3h 6min ago

  • Touch panel makers see shipments for thin-film touch panels increase

    Displays | 4h 56min ago

  • Mobile payment company Alliance Digital Tech to come online by year-end 2014

    Before Going to Press | 3h 18min ago

  • Leadtek unveils wearable device for healthcare

    Before Going to Press | 3h 18min ago

  • BLU makers Forhouse, BriView complete merger

    Before Going to Press | 4h 15min ago

  • Japan Patent Office to cut examination process to 5 months

    Before Going to Press | 4h 16min ago

  • Digitimes Research: Spotify to affect Japan Internet music service industry

    Before Going to Press | 4h 24min ago

  • iPhone 6 Plus to account for 60% of total iPhone 6 device shipments

    Before Going to Press | 4h 25min ago

  • Digitimes Research: ARM Mali to become mainstream GPU architecture for China APs in 2H14

    Before Going to Press | 4h 40min ago

  • Quanta Changshu plants preparing for Apple Watch mass production

    Before Going to Press | 5h 12min ago

  • Leadframe maker Jih Lin to post EPS of NT$3 in 2014

    Before Going to Press | 5h 22min ago

  • New Wintel platforms may impact 4Q14 PC demand

    Before Going to Press | 5h 28min ago

  • ARM to set up IoT business unit

    Before Going to Press | 5h 29min ago

  • Taiwan market: Chunghwa Telecom to launch NFC mobile payment services

    Before Going to Press | 5h 47min ago

  • Windows 10 expected to have limited effect on boosting notebook demand

    Before Going to Press | 5h 51min ago

  • Samsung to host Tizen developer conference in China

    Before Going to Press | 5h 55min ago

Pause
 | 
View more
International Intelligent Aerotropolis and Logistics Forum
DIGITIMES Marketing Services
DIGITIMES Translation Services
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.