Hon Hai to produce new larger-sized televisions

INITIAL FOCUS::The company intends to first launch the 70-inch flat-panel televisions in Taiwan, targeting premium consumers in the larger-sizes TV market

Staff writer, with CNA

Mon, Feb 18, 2013 - Page 13

Hon Hai Precision Industry Co (鴻海), the world’s largest contract electronics manufacturer, plans to launch a 70-inch flat-panel television in the second quarter of this year to target premium consumers in the larger-sized TV market.

The 70-inch TV, assembled by Hon Hai, is not expected to hit the market until April or May, as it still needs to receive approval from regulators, a company source said recently.

Production of Hon Hai’s 60-inch televisions has reached nearly 15,000 units per month, and the initial volume of its 70-inch TVs per month would likely be 10 percent to 20 percent of the monthly production of the 60-inch models, the source said.

KEY PRODUCTS

The 70-inch TVs will initially focus on the Taiwanese market, while the 60-inch TVs will remain as Hon Hai’s key products in China, the source said.

In China, Hon Hai has teamed up with two major Chinese TV brands –– Skyworth (創惟集團) and Haier (海爾) — as well as US-based retailer RadioShack Corp to sell 60-inch TVs equipped with Sharp’s flat screens.

These televisions have been sold under the brand names of Skyworth, Haier and RadioShack.

PARTNERSHIP

In Taiwan, Hon Hai is likely to extend its partnership with Chunghwa Telecom Co (中華電信), the nation’s largest telecoms operator, and multiple system operator Kbro Co (凱擘), since the electronics maker has had problem-free cooperation with the two local firms in selling 60-inch TVs in Taiwan, the source added.

Sales of Hon Hai’s 60-inch TV model, which is sold at NT$38,880 (US$1,314) in Taiwan with a monthly digital content package, are forecast to have topped 10,000 units by the end of last year since its launch on Nov. 11.

These large-screen TVs have proven popular and have also hit US markets under the Vizio brand name.

The Tucheng (土城), New Taipei City-based (新北市) company reported consolidated revenue of NT$313.53 billion for last month, down 8.19 percent from the same month last year, Hon Hai said in a statement on Feb. 7.

The company did not provide its consolidated sales figure for December last year.

Unconsolidated sales were NT$360.94 billion for that month, according to a company statement released on Jan. 10.

For the whole of last year, Hon Hai’s unconsolidated revenues totaled NT$3.22 trillion, a record high and up 16.09 percent year-on-year, the company said in the Jan. 10 statement.

Hon Hai shares rose 0.6 percent to NT$83.6 on Feb. 6, the last trading day before the Lunar New Year holiday, on the Taiwan Stock Exchange.

Over the past 12 months, Hon Hai shares have fallen 17.64 percent, compared with an increase of 0.16 percent on the TAIEX over the same period.

In addition, Hon Hai had reportedly held a series of internal meetings ahead of the Lunar New Year holiday, focusing this year’s business on assembling smartphones and large-sized televisions, the Chinese-language Economic Daily News reported on Feb. 8.