Brian Chen, Research Director, TFT LCD & Materials, DisplaySearch
With low prices and numerous fancy functions, knock-off, or copy-cat, cell phones, satisfy the needs of a large number of laborers and farmers in China, and have become a toy to many. By taking market share, they are threatening major global cell phone makers. Since knock-off cell phones can take less than one month from the initial design stage to final production, the supply chain allows for fast response to ever-changing consumer needs, and has challenged the time-consuming and complex processes of the legitimate cell phone industry. Extensive sales of knockoff cell phones reflect the fact that low-priced products with basic functions have a certain demand, even without reliable warranties or safety guarantees.
By Brian Chen, Research Director, Greater China Market
As TFT LCD makers are now suffering from a deep downturn cycle, TFT-LCD component makers also face the same situation from Q3’08. As some of panel prices are approaching material costs, cost down requests from panel makers to LCD component makers are also bigger than before. Table 1 shows the average LCD panel price and LCD material price reduction rate from Q3’08 to Q4’08. If we compare the large-area panel price reduction by application, we can found the reduction rate is 19-23%. Thus, the component makers had a lot of price pressure from panel makers from late Q3’08. In general, price negotiations happen quarterly between component makers and panel makers. But price negotiations for some component are monthly to due to severe conditions in LCD market. In addition, we found some panel makers delay their payment terms to component makers, which also results in a heavy financial burden to component makers. Continue Reading