Funai Returns, CMO Benefits

Funai Electric exited the Japan LCD TV market in 2004 and now plans to launch its brand with three sizes: 20″, 30″ and 32″. Interesting sizes since nobody makes 30″ anymore. Funai plans for prices to be 15-20% less than first-tier LCD TV vendors. Better be, otherwise, who would buy a Funai TV at the same price as a Sony TV? Or even a Samsung TV? The company is shooting for 10% of the Japanese LCD TV market. Aggressive. The encumbents will make sure Funai doesn’t succeed; companies like Sony, Sharp, Panasonic, Toshiba and others. For some reason, Funai sounds Chinese to me. And because of that, I am not sure if will be that successful if it tried to launch that brand in the US.
Rumors are that 90% of Funai’s panels will come from CMO. 1.8 million LCD TVs will be shipped if all goes to plan for Funai. 90% of 1.8 million is a lot of panels. Funai holds 1.2% of CMO. Also, Funai will give CMO a $400 million 5-year loan to help CMO fund investments in LCD production. More info at DigiTimes.

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