Color TVs and Accessories

The shift to digital broadcasting is profoundly altering the face of the color TV industry in mainland China and Taiwan.
Manufacturers have moved to expand their product lines from low-end, inexpensive CRT products to include high-end models such as LCD, plasma and rear-projection TVs.

Get advice on how to take advantage of this shift with profiles of 64 major mainland China and Taiwan suppliers. Use them to identify new producers to visit or to benchmark your current suppliers.

You'll also receive an in-depth overview of the entire color TV industry in the region, complete with forecasts of price, R&D developments, production trends and much more.

What you'll get

An easy-to-use product comparison table showcasing over 180 color CRT, LCD, plasma, projection and in-car TVs, and TV accessories, with key specifications and color images

Background company information to help you shortlist manufacturers that supply to volume buyers worldwide including Carrefour, Fujitsu, Hyundai, NEC and Wal-Mart

In-depth profiles of 21 suppliers that feature detailed information on production capabilities, export capacities, QC procedures and R&D plans. Based on personal factory tours and interviews with senior managers, this information is not available anywhere else.

Brief supplier profiles and tables on 43 other manufacturers, highlighting information such as factory sizes and locations, technology partners, export capabilities, and quality approvals and certifications

How you'll benefit

Identify which color TV models are most suitable for your price entry point into the market and which manufacturers supply them

Pinpoint suppliers that have introduced vertical integration in their production process, and discover what this means for the quality and price of products you are offered

Find out how China's TV manufacturers have expanded their export markets despite suffering from anti-dumping regulations

Get forecasts for mainland China's and Taiwan's color TV and accessory supply markets for the next 12 months

Executive summary

The color TV industry in mainland China and Taiwan is bullish. Makers are reacting positively to developments in both the domestic and international markets brought about by the shift from the use of analog to digital broadcast signals. They are harnessing maturing technologies, specifically in plasma display panel (PDP), liquid crystal display (LCD), digital light processing (DLP) and liquid crystal on silicon (LCOS) to broaden the color TV line.

Among the color TVs produced in both mainland China and Taiwan are variants of cathode ray tube (CRT) TVs, plasma or PDP TVs, and LCD TVs. This report looks at five key TV product categories — color CRT TVs, home LCD TVs, in-car LCD TVs, plasma or PDP TVs and rear projection (RP) TVs — and TV accessories.

The annual production capacity of China's color TV sector exceeds 80 million sets, most of which are traditional CRT color TVs. According to the China Video Professional Association (CVA), total output of color TVs in 2003 reached 65 million units, 35 million of which went to exports. This year, CVA estimates total color TV output to exceed 70 million units.

The breakdown among color TV product categories is 200,000 units of PDP TVs, 2 million units of projection TVs, 150,000 units of LCD TVs and more than 67 million units of CRT TVs.

Despite the anti-dumping issue that threatened China's TV exports, the CRT TV industry has remained alive because of the product's comparatively low price and stable market.

China's color TV makers saw a rapid export growth in 2003, with year-on-year volume growth reaching 30.5 percent and the value rising by 48 percent. LCD TVs accounted for 8.9 percent of the total export value, which indicates that color TV exports are gradually making the transition from low-added-value, low-end products to high-end products.

The home LCD TV market in the mainland is barely two years old and there are only about 15 to 20 makers, most of which are in Shanghai, Guangdong province and Shangdong province.

Five of the 10 biggest suppliers of LCD panels in the world are in Taiwan. Together, they currently supply one-fifth of the world's LCD requirement. By extension, Taiwan's LCD TV industry remains very competitive and remains Taiwan-based.

Although only a few color TV makers have the capacity to produce PDP TVs, mainland TV makers acknowledge that the only way they can get around the anti-dumping regulation of the US is to break through the export market using a high-end product like PDP TV. Thus, makers have started to strengthen their R&D and raise the technology content of PDP TV than the other TV product lines.

Most Taiwan TV companies have manufacturing facilities in mainland China that also produce CRT and PDP TVs for the export market. China is the ideal location for the production of these types of TVs since they require large factory spaces. Also, some panels can now be sourced locally in mainland China.

Industry overview

Digital signal processing and broadcasting and the application of maturing technologies have turned color television set (TV) manufacturing into a bullish industry with a host of new generation products. Recent developments in panel technology, specifically in plasma display (PDP), liquid crystal display (LCD), digital light processing (DLP) and liquid crystal on silicon (LCOS), have broadened the TV line, especially in the small- and large-screen segments, making in-car, tablet and wide-screen TVs/monitors possible. Among the color TVs in the market are cathode ray tube (CRT) TVs, whose variants include the traditional CRT, flat CRT, super-flat CRT and rear projection (RP) CRT, PDP TVs and LCD TVs.

In 2003, the world expected a new generation of flat TVs — PDP and LCD — to quickly take over the CRT TV line and that the latter would soon be out of the mainstream market. However, the CRT TV industry held its ground because of its comparatively low price and stable market. It cornered more than 90 percent of the color TV market that year.

iSuppli, a value chain service provider for the electronics industry, forecasts that CRT TV will remain the top-selling TV format for years to come, maintaining a 90 percent share in terms of units of the TV market through 2008. Its report indicates that CRT TVs will outpace DLP-, LCD- and LCOS-based models, and forecasts total CRT TV shipments to amount to US$7.6 billion by the end of 2004, with other formats projected at about US$2.8 billion.

Mainland China
Domestic demand was the primary factor that boosted mainland China's TV production over the last few years. The country's heavy promotion of digital TV, rapid growth in high-definition program content, improvements in housing conditions and exponential growth among internet users has resulted in the populace upgrading their analog TVs to digital and buying second or third units. In Guangdong province alone, the number of digital TV users is set to reach 600,000 this year.

Over the past years, color TV makers have greatly increased their production capacities. New entrants have made the line very competitive, stimulating domestic demand further and creating greater opportunities for makers to export. In 2003, the market share of China's top five local color TV manufacturers reached 82.3 percent, an increase of 17 percent over 2002, and brand concentration was further increased with production and sales of TCL and Changhong products both surpassing 10 million sets.

Samples of supplier profile

Albatron Technology Co. Ltd
Albatron Technology Co. Ltd of Taiwan began production of LCD TV models last year. Today, the privately owned company is confident of the line's continuing expansion and is positive that the sales target of US$25 million for LCD TV models will be reached by year-end 2004. In 2003, total sales of the same amounted to US$17 million.

Exports account for a sizeable portion of Albatron's earnings. Overseas shipments of LCD TV models totaled US$15 million last year. This year, the export target for the line is set at US$23 million. Albatron exports chiefly to markets in Europe, the US, Japan and Russia.

LCD TVs, however, are just one of Albatron's product lines. Color CRT and plasma models are also manufactured and sold overseas. All in all, the company made US$150 million in sales of all products, including mother boards and graphic cards, in 2003. This is a huge jump from the US$90 million it realized the previous year.

Exports, likewise, performed well as it contributed a hefty US$140 million to over-all sales. This is double the US$70 million made in exports in 2002. This year, Albatron is hoping to make a relatively modest growth as it targets a total sale of US$170 million. The bulk of this amount or about US$160 million is predicted to come from exports.

Albatron was formed in 1984, and has been listed in the Taiex Stock Exchange since 1999. It is entirely owned by Taiwanese investors. Current CEO Ko Jack is the founder of the Gigabyte Technology.

Manufacturing capabilities
Albatron's business offices are in Chungho City in Taipei, but its 12,000sqm factory is located in Taoyuan. Here, machines and equipment valued at US$12 million are maintained. Last year, these machineries have been refurbished at an estimated cost of US$400,000.

Lately, however, Albatron has been pouring huge investments into the upgrade and maintenance of its production facilities. Expenditures on upkeep have reportedly reached US$2.1 million just for the first half of 2004 alone. In 2005, the budget for the same is set at US$500,000.

Output for the first semester has averaged 2,500 units monthly. The company, however, has the capacity to produce as many as 10,000 or even 20,000, units monthly with the help of subcontractors. All aspects of production are carried out in-house, from design to molding, assembly, final QC and packaging.

The workforce has expanded from 273 workers in 2003 to 383 workers now. A total of 227 workers directly engaged in production. Two workers are assigned on each assembly line except the final assembly lines, which have six workers each.

Sample of product gallery

Color CRT TVs Company:Aetna Model/Name:C3220-HDTV1 FOB Price (US$):450 Screen size (inches and type):32

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