Innolux to Manufacture more Vizio TVs

According to DigiTimes, Innolux Display is currently in talks with Amtran Technology to increase LCD TV production for Vizio. Amtran’s spokesperson Scottie Chiu should know as the company is the second largest shareholder of Vizio. Innolux has manufactured 26″ LCD TVs for Vizio and will most likely include other sizes in the future.

There was some interesting bits in DigiTime’s piece as the report, according to Amtran’s Chiu, reported that Amtran and Innolux will be securing more orders from LCD manufacturers due to a shortage of LCD TV panels. In other words, Amtran and Innolux might be ready to book more LCD TV panels than they need. Why would they do this? To secure a steady stream of LCD TV panels for their OEM business to Vizio and others. Another reason is to put a cap on prices if forecasted to be increasing. This type of business activity is called double-booking and can impact the LCD panel market is a variety of ways.

First off, double-booking can exacerbate a shortage situation by inflating the demand for panels. Second, by inflating demand with supply held fairly constant, the prices increase significantly. This in turn can impacts manufacturing and the final set prices at retail, potentially leading to a downturn in end consumer demand. A downturn in end consumer demand can cause some havoc for all companies in the LCD supply chain.

Source: DigiTimes

[tags]26″, Amtran Technology, Double Booking, Innolux Display, LCD TV, Vizio[/tags]

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