As the end-market demand was not as optimistic as expected, TV brands quickly adjusted the LCD TV production plan for 2011. However, brand owners and OEM/ODM manufacturers still plan to increase production in the third quarter to meet the peak sales season at the end of the year. According to the DisplaySearch MarketWise-LCD Industry Dynamics report, the total TV production of the top 16 brands in July was 14.4 million units, compared with 16.9 million units in August and 19.40 million units in September. On the other hand, LCD TV OEM/ODM manufacturers estimated that the output in July would reach 3.9 million units, which was 4.7 million units in August and 5.4 million units in September.
Due to lower-than-expected market demand, especially in the downturn of Western European and North American markets, the world's top five brands produced 10% less than expected in May. In order to reduce inventory risks and stabilize the supply chain, many manufacturers, including Chinese domestic brands, are cautious in adjusting their production plans.
According to Deborah Yang, research director of DisplaySearch, “The slowdown in market demand and competition in market share make LCD TV makers pay more attention to low-cost production and low-cost promotions in the second half of the year. Although some major regions still have price elasticity, TV brands still have a plan for production. Careful and cautious. Many brands struggled in sales in developed markets and at the same time carried out inventory clearance in Western Europe.â€
As for the OEM business, the total output of Taiwan's top 7 OEM TV makers increased by 13% month-on-month in May, in line with expectations. The cost competition and integrated business model have enabled OEMs such as JZ, Compal, Foxconn, New Chi Mei, and TPV to get more orders from brand owners. In the third quarter of 2011, OEMs planned to produce a total of 14 million units, a 24% increase over the previous quarter.
Due to lower-than-expected market demand, especially in the downturn of Western European and North American markets, the world's top five brands produced 10% less than expected in May. In order to reduce inventory risks and stabilize the supply chain, many manufacturers, including Chinese domestic brands, are cautious in adjusting their production plans.
According to Deborah Yang, research director of DisplaySearch, “The slowdown in market demand and competition in market share make LCD TV makers pay more attention to low-cost production and low-cost promotions in the second half of the year. Although some major regions still have price elasticity, TV brands still have a plan for production. Careful and cautious. Many brands struggled in sales in developed markets and at the same time carried out inventory clearance in Western Europe.â€
As for the OEM business, the total output of Taiwan's top 7 OEM TV makers increased by 13% month-on-month in May, in line with expectations. The cost competition and integrated business model have enabled OEMs such as JZ, Compal, Foxconn, New Chi Mei, and TPV to get more orders from brand owners. In the third quarter of 2011, OEMs planned to produce a total of 14 million units, a 24% increase over the previous quarter.
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