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Elcoteq: Flat Panel TV in China
It is expected that the market for flat panel TVs (including LCD and PDP) in China will grow significantly, with a compound annual growth rate of 26.7% from 2008 to 2012, according to DisplaySearch. There is an installed base of approximately 400 million CRT TVs available to be replaced by flat panel TVs. DisplaySearch believes that the Chinese TV market is entering the flat panel TV era in 2009. DisplaySearch stated that flat panel TVs will replace CRT TVs when its price is approximately twice that of a similar-sized CRT. This has already occurred in the 30 to 34-inch size range, and the trend is moving down in screen size. From 2008 to 2012, unit shipments and share of flat panel TVs in China will grow from 13million to 37million and 32% to 80% respectively.
Elcoteq is ready to support the OEMs to address this immense opportunity. The company considers flat panel TVs to be a strategic product segment for one of its business, Home Communications. Maintaining a reasonable inventory for large screen flat panel TVs is always extremely costly and puts a strain on facility space. It’s very expensive to control the logistics flow of such product on a just-in-time basis. The manufacturing capacities with proximity to vast markets and favourable costs are essential to better the OEMs’ profitable growth in the market.
Elcoteq Beijing, provides assembly manufacturing for handheld and infrastructure equipments of communications products, is so flexible to extend its service offering to cater for the OEMs’ needs in the region. In the first quarter of 2009, the plant started to provide service solutions for printed circuit board assemblies (PCBA) and various subassemblies for flat panel TVs, including related supply chain management and sourcing services. The manufacturing was ramped up according to schedule in second quarter to fulfill the customer’s requirement. Along with the progressive elimination of analog TV broadcasts in various markets and development of digitalization support for high definition TV, the set-top box market is inferred to grow following the track of the flat panel TVs.
Likewise, Elcoteq Beijing has managed to prepare for manufacturing set-top box. The plant has obtained the license to manufacture satellite television reception equipment from the Ministry of Commerce of China. This license enables Elcoteq Beijing to provide its customers with life-cycle support and full turnkey assembly services for set-top boxes. Besides Elcoteq Beijing, the Elcoteq Juarez, Mexico plant also supports OEMs in the flat panel TV and set-top box markets. By leveraging its global sourcing network, Elcoteq can develop products more efficiently with competitive cost and delivers more value to the OEMs in the business segment
Topics:
Beijing, China, FTV, HC, Home Communications, LCD, PCBA, PDP, TFT, TV
