China Televsions and Panels Industry Updates

[Bannor]

This thread has become quite interresting.

I do agree with most of you mostly, and I do believe China can easily become the market leader in anything if they make the right adjustments in the years to come (although I don't agree on the statement that China did all the realizations the past few years on their own. There were just too many technologies being taken from foreign companies). But Celebrition has a point. It may not be smart to take charge in every field of business just because of the need to keep jobs. But it will be interresting to see.

Then again, the competitior in the low price range will most likely be future Indian brands. But we won't start seeing these in quite awhile. So China does have some time to keep doing what they are doing for the time being. So why hurry up?

Nontheless, what China has that the rest of the world lacks, is a huge supply of educated engineers and scientists who are now getting good experience working for every single multinational company out there, who has just all openned up their RnD offices in China, dipping into the vast supply of human resources there. Give it 10 years, and alot of these smart young talents will start on their own, get funding and eventually we will see some black sheeps comming from China. Or they will start working for the big Chinese companies instead of some foreign company because of nationalism.

We are all the same, so the determining factor in the long run is nothing more than the supply of the most key resource out there: human beings. Once that is in place, I don't think we will see people holding back technologies (unless they have a monopoly, or unless we have cartel structures. But god I hope we can avoid that!). And China will have the most scientists, so China will take the lead in many industries in the future. Simple as that.

Edit: come to think of it following this string of thoughts, watching what Nokia has been doing lately by moving so many jobs over to Tata Teleservices, that is one way foreign internationals can be able to counter the chinese brands in the low to medium cost market seeing indian labor is even cheaper. However, given India's lacking infrastructure there is a limit to this as of now. But in RnD it may be big. India does have a sizeable amount of university graduates too.

[7freedom7]

Originally Posted by Bannor

Edit: come to think of it following this string of thoughts, watching what Nokia has been doing lately by moving so many jobs over to Tata Teleservices, that is one way foreign internationals can be able to counter the chinese brands in the low to medium cost market seeing indian labor is even cheaper. However, given India's lacking infrastructure there is a limit to this as of now. But in RnD it may be big. India does have a sizeable amount of university graduates too.

Nokia cannot get to Chinese brands just by moving its software development base to India. Software development is important but it doesn't amount to everything among the whole industry supply chain and industry cluster from IC design to panel to PCB to battery to assembly, etc. And in fact, Nokia has got more R&D centers in China than anywhere else in Asia. Nokia cellphones are mostly made in China not in India, and even the world's cheapest Indian table computer Indian medias were hyping up not long ago is actually made in China. The China's cellphone industry chain has more edges over India than the China's infrastructure does so to speak. No matter how western medias harp on about the Indian elephant superior to the Chinese dragon, Nokia wont fall back on India to take on Chinese competitors or Samsung, HTC, Apple, etc.

Its recent move in India is more like cutting cost when taking a hard hit than anything else. If Nokia were to be in good shape, it would recruit technical staff in Europe as many Chinese multinationals are doing now to intensify its worldwide reach. Nokia was stuck up on Symbian and its wrong decision led to defeat and I'm afraid that the low labour cost cannot save Nokia.

[Celebriton]

Technology business is very risky. You are a great hero today, but tomorrow, may be not. The change is so fast and dramatic, a god turned into a loser.

I think I understand the Hisense worker said, that the company plan is to play slow. Which is focusing on building a strong foundation and climbing the ladder one by one. A smart move.

[Bannor]

7freedom7: Yes you are probably right. There is a huge limit on how much of their operations they can move to India.

I don't see anyone in the western media that proclaims the Indian elephant to be superior to the chinese dragon though. For that they have too many issues in India. But they do have many university graduates even though the country doesn't hold up.

[7freedom7]

China-based TV vendors look to tackle foreign markets in 2013

China-based TV vendors are looking to further tackle foreign markets in 2013, with emerging markets as their focus, according to industry sources.

The sources said the vendors believe that increased TV sales in emerging markets will further bump up their overall TV market share as well as push up their revenues in 2013. In 2012 the vendors held a global TV market share of 23%, similar to that of Japan-based TV vendor's, while Korea-based TV vendors Samsung Electronics and LG Electronics held a combined 40%.

Additionally, a major reason why the China-based vendors were able to bump up their global TV market share in 2012 was due to TV sales in China. The sources said the vendors were able to reach almost an 80% market share in China, and that number could potentially rise even higher in 2013 if the China government issues further energy-saving subsidies for TV purchases.

Market observers meanwhile said they believe Taiwan-based panel makers' product differentiation strategies such as producing 39- and 50-inch TV panels will play a major role in helping the China-based vendors further increase their TV market shares.

[andyvia]

TCL, Hisense and Skyworth revealed their annual shipments for 2012

TCL: 15.781 million
Hisense: 12.7556 million
Skyworth: 10.597 million

[7freedom7]

BOE, CSOT expected to see 1Q13 net profits

China-based TFT-LCD panel makers BOE Technology and China Star Optoelectronics Technology (CSOT) are expected to generate first-quarter net profits of CNY200-250 million (US$32.1-40.2 million) and CNY400 million, according to industry sources.

BOE recorded revenues of CNY25.76 billion and net profits of CNY250 million for 2012, while CSOT posted revenues of CNY7.268 billion for net profits of CNY315 million, the sources indicated.

BOE and CSOT mainly ship 32-inch TV panels, with monthly shipments of over one million units and nearly 1.5 million units, respectively, in the first quarter of 2013, the sources noted. CSOT's 8.5G monthly capacity of 120,000 glass substrates reached full utilization in the first quarter.

In comparison, Taiwan-based fellow maker Innolux saw operations turn to net operating profits of NT$3.138 billion (US$106 million) but still suffered net losses of NT$3.218 billion for the fourth quarter of 2012, the sources pointed out. Innolux is likely to see a small net operating profit but may not post net profits for the first quarter of 2013, the sources indicated.

Taiwan-based AU Optronics suffered net operating losses of NT$4.762 billion and net losses of NT$13.172 billion for the fourth quarter of 2012 and is expected to be unable to swing into profitability at least until the second quarter of 2013, the sources noted.