Tatung may win 32-inch LCD TV contract order from Philips

Aug 03, 2005 Ι Industry In-Focus Ι Electronics and Computers Ι By Quincy, CENS
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Taipei, Aug. 3, 2005 (CENS)--Royal Philips Electronics of the Netherlands reportedly plans to choose a contact supplier of 32-inch liquid crystal display (LCD) TVs in Taiwan, with Tatung Co. likely to win the partnership, according to industry sources.

The sources said Philips would launch its first locally-made 32-inch LCD TV in September at a unit price of NT$59,000 (US$1,855 at US$1: NT$31.8), the same level as for a model pushed by Matsushita Taiwan (Panasonic).

Currently, Philips' 32-inch LCD TV model sold in Taiwan for NT$99,000 (US$3,113) per unit, is imported from the company's plant in Belgium. The price is too high to be competitive in the Taiwan market.

Philips Taiwan officials refused to comment on the local contract partner. Industry sources said that Philips and Tatung have maintained close contacts with each other and the latter is expected to win Philips' order first for the domestic market and then for the European market (Tatung currently also runs a TV plant in the Czech Republic.)

A senior Philips Taiwan official explained that Philips and some major counterparts such as Sharp and Sony are first-class brands for LCD TV, and they might expand market share by cutting prices. For example, he added, Philips recently cut the price for a 42-inch plasma display panel (PDP) TV model from NT$109,000 (US$3,427) to NT$89,000 (US$2,798), immediately triggering strong buying willingness.

Chairman Chen Shih-chang of Panasonic Consumer Sales (Taiwan) Co., Ltd. (PCST) pointed out that all of the functions and quality of Panasonic-branded LCD TVs produced in Taiwan should fully match those of Japanese-made counterparts. As a result, the profit margin of the firm's 32-inch LCD TVs was greatly compressed.

Lee Duan-jen, vice president of Taiwan Kolin Co., Ltd., another local maker of LCD TVs, said that supply of both 32- and 37-inch TV panels has remained tight for a certain period and there is little room for price reduction.

Kolin, however, recently cut the prices to only NTY$45,900 (US$1,443) for an entry-level 32-inch TV model, to NT$79,900 (US$2,512) for a 37-inch model, and NT$129,000 (US$4,056) for a 42-inch model.
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