StockNews - LCD TVs Industry
China's TCL Multimedia and France's Thomson have initiated a strategic alliance to buy large liquid crystal display (LCD) panels from LG.Philips. In the deal, TTE Corp., which is a TCL-controlled joint venture with Thomson, will receive constant supply of thin film transistor LCD (TFT-LCD) panels from LG.Philips, one of the few manufacturers of such devices which is essential in the production of large-sized LCD TVs.
The agreement comes less than two months after Dutch electronics giant Philips , a partner in LG.Philips, said it would pay 20 million euros ($24 millin) to triple its stake in TCL Multimedia's parent, China-listed TCL Corp. , to 7.46 percent from 2.46 percent.
The deal is similar to one signed earlier this month by TPV Technology Ltd. , the world's largest computer monitor maker and also a maker of LCD TVs, and LCD panel maker BOE Technology Group Co. Ltd. , TPV's largest individual stakeholder.
Under that deal, TPV agreed to buy LCD panels worth $2.3 billion from BOE over the next three years.
From the above 2 deals, there have been an increasing trend of new Asian companies that are edging their way into the LCD TVs market. This is mainly due to the consumer demand across Asia Pacific for upgrades into flat screen thin TVs. However, falling prices due to increased competition would likely hurt profits, but all is not lost as companies can look forward to replacement in the next 5 years as LCD TVs and Plasma TVs have shorter lifespans than mass-market CRT TVs.
The agreement comes less than two months after Dutch electronics giant Philips , a partner in LG.Philips, said it would pay 20 million euros ($24 millin) to triple its stake in TCL Multimedia's parent, China-listed TCL Corp. , to 7.46 percent from 2.46 percent.
The deal is similar to one signed earlier this month by TPV Technology Ltd. , the world's largest computer monitor maker and also a maker of LCD TVs, and LCD panel maker BOE Technology Group Co. Ltd. , TPV's largest individual stakeholder.
Under that deal, TPV agreed to buy LCD panels worth $2.3 billion from BOE over the next three years.
From the above 2 deals, there have been an increasing trend of new Asian companies that are edging their way into the LCD TVs market. This is mainly due to the consumer demand across Asia Pacific for upgrades into flat screen thin TVs. However, falling prices due to increased competition would likely hurt profits, but all is not lost as companies can look forward to replacement in the next 5 years as LCD TVs and Plasma TVs have shorter lifespans than mass-market CRT TVs.
posted by Andrew at 6:42 PM
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