Amtran Aims to Ship 8 Million LCD TVs in 2010

Taiwan-based Amtran Technology Co Ltd, the second largest contract supplier of LCD (liquid crystal display) TVs on the island, ambitiously aims to ship eight million units of such TVs in 2010, shooting up 80 percent from 2009`s 4.3 million units, according to the firm.

Impervious to the global downturn last year, Amtran scored annual revenue of NT$64.04 billion for the year, still up 5 percent from 2008, in sharp contrast to most Taiwanese enterprises suffering sales declines.

With the global economy recovering, the firm is expected by institutional investors to enjoy a 30-50 percent revenue growth this year. One reason is that the firm has gained solid support from LED (light emitting diode) makers to dedicate its energies to production of LED-backlit LCD TVs, which are estimated to contribute 30 percent to its overall LCD TV shipment this year.

Furthermore, with strenuous efforts on market diversification, the company has succeeded in exploring new markets in China, India, Russia and Brazil. Worth mentioning is that shipment to China is projected to account for 10 percent of the total this year due to strong demand in the local consumer market for LCD TVs. In the past, the firm only focused on cooperation with its US-based sales arm, Vizio, in the US market.

On the other hand, the firm is poised to face the mighty challenge from Hon Hai Group, which has aggressively deployed its business operations in the LCD TV manufacturing industry. The firm explained that it provides complete LCD TV poduction solutions as an ODM (original design manufacturer) for brand clients, while Hon Hai Group is merely engaged in OEM (original equipment manufacturing) business in the line. In other words, the firm stressed, the two sides won`t be in a direct competition against each other.

In fact, Amtran recently issued convertible bonds valued at NT$4 billion, which have been bought by Hon Hai Group and a couple of Taiwanese LED makers.

Source: CENS