WitsView: 2012 Projected SI ratio of LCD TV Remains 33~34%, Growth Momentum Stagnant

According to Witsview, TrendForce’s panel research division, the TV SI ratio in 2011 and 2012 both hovered around 33~34%, the 2012 SI ratio would be a mere 30% if Philips’ outsourcing to TPV is excluded. These figures are based on joint analysis of the cooperation relationship between TV SIs and brand vendors.

However, in terms of interdependent relationship between panel makers and brand vendors, Samsung Display and LGD still enjoy the advantages of cooperation that contributes to stable demand from their own-brands (Samsung & LGE) and strategic brands (Sony, Phillips, etc). Japanese brands such as Toshiba and Panasonic possess specific outsourcing directions based on the distribution channels and strategic concern. Both Panasonic and Sharp revised downward their TV panel shipments by 3~5 million units and 7~8 million units respectively, clearly unable to meet the demand from their own brands; therefore, they are planning to expand their panel purchase ratio in 2012. Benefiting from Panasonic’s outsourcing panel strategies, CMI will enjoy surged panel shipments of 3 million units this year from 300 thousand units a year earlier. 
 
Although Sony and Samsung had dissolved their joint venture in LCD panels, Sony still highly depends on Samsung Display in the short term due to their purchasing strategies, product quality, technical development and the existing, developed models. In the past, Sony would conduct their own panel purchases; however, in this year, Sony intends to have the SI makers to be in charge of the purchase a portion of the panels, by taking advantages of their economic scale to negotiate and bargain for lower costs. Foxconn’s SI service is an extra bonus to CMI, while AUO, on the other hand, struggles to receive orders due to the lack of its own brand’s support.

2012 Global LCD TV Brands Target and Main Panel Supply Chain Relationship

Source: WitsView