The Company said that OEM outsourcing of LCD monitors rose to 80% of the total supply while LCD TV OEM outsourcing increased to 23%. In 2008, both are expected to increase further as LCD monitor makers, and especially TV brands, continue to outsource and to pressure supply chain participants to reduce costs. Among those brands moving an outsorce OEM model are Sony, Philips, Pioneer and Toshiba.
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LCD TV outsourcing is expected to grow to at least 35%. The results and their implications in addition to other insights were revealed in DisplaySearch's Global LCD TV Supply Chain Analysis & OEM/ODM Opportunities Topical Report.
"As the demand for flat panel TVs continues to increase, the pressure on supply chain participants becomes intense, resulting in rapidly eroding TV maker profit margins. Based on these market dynamics, the concern of TV supply chain participants is whether they will benefit from the growth of both the LCD TV market and outsourcing," noted Deborah Yang, Director of Monitor and TV Research.
